Comparing Rumble (NASDAQ:RUM) & Nextdoor (NYSE:NXDR)

Nextdoor (NYSE:NXDR) and Rumble (NASDAQ:RUM) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Volatility and Risk

Nextdoor has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Rumble has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Institutional and Insider Ownership

35.7% of Nextdoor shares are owned by institutional investors. Comparatively, 26.1% of Rumble shares are owned by institutional investors. 33.5% of Nextdoor shares are owned by company insiders. Comparatively, 45.1% of Rumble shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Nextdoor and Rumble”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextdoor	$257.65 million	3.36	-$54.20 million	($0.08)	-28.38
Rumble	$117.66 million	38.09	-$81.83 million	($0.59)	-15.32

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nextdoor	-11.08%	-6.16%	-5.45%
Rumble	-134.60%	-22.77%	-16.34%

Analyst Ratings

This is a breakdown of recent ratings for Nextdoor and Rumble, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	1	0	2.00
Rumble	1	0	0	0	1.00

Nextdoor presently has a consensus price target of $2.80, indicating a potential upside of 23.35%. Given Nextdoor’s stronger consensus rating and higher probable upside, research analysts plainly believe Nextdoor is more favorable than Rumble.

Summary

Nextdoor beats Rumble on 11 of the 14 factors compared between the two stocks.

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.

About Rumble

Rumble Inc. operates video sharing platforms in the United States, Canada, and internationally. The company operates rumble.com, a free-to-use video sharing and livestreaming platform where users can subscribe to channels to stay in touch with creators, and access video on-demand (VOD) and live content streamed by creators. It also operates locals.com, a platform where users can access free content and purchase subscriptions to support creators and access exclusive content in creator communities; Rumble Streaming Marketplace, a patent-pending application designed to enable a first-of-its-kind livestreaming and monetization service for creators; and Rumble Advertising Center (RAC), an online advertising management exchange. The company was founded in 2013 and is headquartered in Longboat Key, Florida.