Nextdoor (NXDR) and Its Competitors Financial Contrast

Nextdoor (NYSE:NXDR) is one of 49 public companies in the “Services – Computer Programming And Data Processing” industry, but how does it contrast to its competitors? We will compare Nextdoor to similar companies based on the strength of its profitability, dividends, earnings, institutional ownership, risk, analyst recommendations and valuation.

Insider & Institutional Ownership

35.7% of Nextdoor shares are owned by institutional investors. Comparatively, 56.4% of shares of all “Services – Computer Programming And Data Processing” companies are owned by institutional investors. 33.4% of Nextdoor shares are owned by insiders. Comparatively, 16.4% of shares of all “Services – Computer Programming And Data Processing” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Nextdoor has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Nextdoor’s competitors have a beta of 0.53, meaning that their average share price is 47% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Nextdoor and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	0	0	1.67
Nextdoor Competitors	101	206	231	15	2.29

Nextdoor presently has a consensus target price of $2.10, indicating a potential upside of 33.33%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 96.40%. Given Nextdoor’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Nextdoor has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Nextdoor and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$257.65 million	-$54.20 million	-11.25
Nextdoor Competitors	$260.79 million	-$83.53 million	-11.56

Nextdoor’s competitors have higher revenue, but lower earnings than Nextdoor. Nextdoor is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Nextdoor and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nextdoor	-21.04%	-11.48%	-10.11%
Nextdoor Competitors	-65.22%	-919.72%	-68.66%

Summary

Nextdoor beats its competitors on 7 of the 13 factors compared.

Nextdoor Company Profile

Nextdoor Holdings, Inc. operates as the neighborhood network that connects neighbors, businesses, and public services in the United States and internationally. It enables small and mid-sized businesses, large brands, public agencies, and nonprofits to receive information, give and get help, and build connections. The company is headquartered in San Francisco, California.