Comparing AvePoint (NASDAQ:AVPT) and Nextdoor (NYSE:KIND)

AvePoint (NASDAQ:AVPT) and Nextdoor (NYSE:KIND) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Institutional and Insider Ownership

44.5% of AvePoint shares are held by institutional investors. Comparatively, 35.7% of Nextdoor shares are held by institutional investors. 22.7% of AvePoint shares are held by insiders. Comparatively, 33.4% of Nextdoor shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AvePoint	10.55%	10.52%	6.48%
Nextdoor	-36.95%	-15.75%	-13.84%

Risk and Volatility

AvePoint has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Nextdoor has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for AvePoint and Nextdoor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AvePoint	0	6	10	0	2.63
Nextdoor	0	0	0	0	0.00

AvePoint currently has a consensus price target of $16.44, indicating a potential upside of 48.52%. Given AvePoint’s stronger consensus rating and higher probable upside, research analysts plainly believe AvePoint is more favorable than Nextdoor.

Valuation and Earnings

This table compares AvePoint and Nextdoor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AvePoint	$419.50 million	5.59	$34.80 million	$0.21	52.71
Nextdoor	$248.31 million	3.42	-$98.06 million	($0.24)	-9.25

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

Summary

AvePoint beats Nextdoor on 12 of the 14 factors compared between the two stocks.

About AvePoint

AvePoint, Inc. provides cloud-native data management software platform in North America, Europe, Middle East, Africa, and Asia Pacific. It also offers software-as-a-service solutions and productivity applications. The company offers modularity and cloud services architecture to address critical challenges and the management of data to organizations that leverage third-party cloud vendors, including Microsoft, Salesforce, Google, AWS, Box, DropBox, and others; license and support; and maintenance services. AvePoint, Inc. was incorporated in 2001 and is headquartered in Jersey City, New Jersey.

About Nextdoor

Nextdoor Holdings, Inc. operates a neighborhood network that connects neighbors, businesses, and public services in the United States and internationally. The company enables neighbors and organizations to get information, give and get help, and build connections. It also offers advertising solutions, designs to generate value for businesses for connection and sales expansion. The company is headquartered in San Francisco, California.