Head to Head Comparison: ZoomInfo Technologies (NASDAQ:GTM) versus Nextdoor (NYSE:NXDR)

ZoomInfo Technologies (NASDAQ:GTM) and Nextdoor (NYSE:NXDR) are both small-cap communication services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ZoomInfo Technologies and Nextdoor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZoomInfo Technologies	7	10	1	0	1.67
Nextdoor	1	2	1	0	2.00

ZoomInfo Technologies presently has a consensus price target of $5.93, indicating a potential upside of 59.35%. Nextdoor has a consensus price target of $2.80, indicating a potential upside of 30.54%. Given ZoomInfo Technologies’ higher possible upside, analysts clearly believe ZoomInfo Technologies is more favorable than Nextdoor.

Institutional & Insider Ownership

95.5% of ZoomInfo Technologies shares are held by institutional investors. Comparatively, 35.7% of Nextdoor shares are held by institutional investors. 9.9% of ZoomInfo Technologies shares are held by insiders. Comparatively, 33.5% of Nextdoor shares are held 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.

Earnings & Valuation

This table compares ZoomInfo Technologies and Nextdoor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZoomInfo Technologies	$1.25 billion	0.87	$124.20 million	($1.86)	-2.00
Nextdoor	$257.65 million	3.18	-$54.20 million	($0.08)	-26.81

ZoomInfo Technologies has higher revenue and earnings than Nextdoor. Nextdoor is trading at a lower price-to-earnings ratio than ZoomInfo Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

ZoomInfo Technologies has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Nextdoor has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Profitability

This table compares ZoomInfo Technologies and Nextdoor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZoomInfo Technologies	-43.01%	20.16%	4.33%
Nextdoor	-11.08%	-6.16%	-5.45%

Summary

ZoomInfo Technologies beats Nextdoor on 7 of the 13 factors compared between the two stocks.

About ZoomInfo Technologies

ZoomInfo Technologies Inc., through its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally. The company’s cloud-based platform provides information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage through automated sales tools, and track progress through the deal cycle. It serves enterprises, mid-market companies, and down to small businesses that operate in various industry verticals, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. ZoomInfo Technologies Inc. was founded in 2007 and is headquartered in Vancouver, Washington.

About Nextdoor

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.