Analyzing Aurora Mobile (NASDAQ:JG) and Nextdoor (NYSE:KIND)

Nextdoor (NYSE:KINDGet Free Report) and Aurora Mobile (NASDAQ:JGGet Free Report) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Insider & Institutional Ownership

35.7% of Nextdoor shares are held by institutional investors. Comparatively, 85.5% of Aurora Mobile shares are held by institutional investors. 47.6% of Nextdoor shares are held by company insiders. Comparatively, 31.2% of Aurora Mobile shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Nextdoor and Aurora Mobile’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nextdoor $218.31 million 3.88 -$147.76 million ($0.38) -5.66
Aurora Mobile $40.88 million 0.46 -$8.75 million ($1.60) -1.96

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

Volatility & Risk

Nextdoor has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Aurora Mobile has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Nextdoor and Aurora Mobile, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nextdoor 0 4 0 0 2.00
Aurora Mobile 0 0 1 0 3.00

Nextdoor currently has a consensus price target of $2.85, indicating a potential upside of 32.56%. Aurora Mobile has a consensus price target of $7.00, indicating a potential upside of 122.93%. Given Aurora Mobile’s stronger consensus rating and higher probable upside, analysts clearly believe Aurora Mobile is more favorable than Nextdoor.

Profitability

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

Net Margins Return on Equity Return on Assets
Nextdoor -67.69% -24.22% -20.71%
Aurora Mobile -21.65% -30.47% -8.34%

Summary

Aurora Mobile beats Nextdoor on 7 of the 13 factors compared between the two stocks.

About Nextdoor

(Get Free Report)

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.

About Aurora Mobile

(Get Free Report)

Aurora Mobile Limited, through its subsidiaries, provides a range of developer services in China. The company provides push notification, instant messaging, analytics, sharing and short message service, one-click verification, and other services. The company offers real-time market intelligence solutions, such as product iApp, which provides analysis and statistical results on the usage and trends of mobile apps to investment funds and corporations. It also provides financial risk management solutions to assist financial institutions, licensed lenders, and credit card companies in making informed lending and credit decisions; and location-based intelligence solutions to help retailers and other traditional brick-and-mortar industries, such as real estate developers, track and analyze foot traffic, conduct targeted marketing, and make more informed and impactful operating decisions, such as site selection. In addition, the company offers targeted marketing solutions to help advertisers to target the right audience with the right content at the right time; application programming interfaces that create connectivity and automate the process of message exchange between the mobile apps and its backend network; an interactive web-based service dashboard that allows app developers to utilize and monitor its services through controls on an ongoing basis; and value added services, such as Advertisement SAAS, a data management platform service, which provides tagged and de-identified population data package; JG Alliance, an integrated marketing campaign services to advertising customers; and AD Mediation Platform to help mobile app developers access other mainstream advertising platforms. It primarily serves mobile app developers in a range of industries, such as media, entertainment, gaming, financial services, tourism, ecommerce, education, and healthcare. It has a strategic partnership with Zhipu AI to develop AI applications. The company was founded in 2011 and is headquartered in Shenzhen, the People's Republic of China.

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