Nextdoor (NXDR) vs. The Competition Financial Review

Nextdoor (NYSE:NXDR) is one of 48 public companies in the “Services – Computer Programming And Data Processing” industry, but how does it weigh in compared to its rivals? We will compare Nextdoor to similar businesses based on the strength of its earnings, institutional ownership, valuation, analyst recommendations, dividends, profitability and risk.

Risk & Volatility

Nextdoor has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Nextdoor’s rivals have a beta of 0.54, suggesting that their average stock price is 46% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$257.65 million	-$98.06 million	-11.89
Nextdoor Competitors	$292.33 million	-$55.65 million	-9.74

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

Profitability

This table compares Nextdoor and its rivals’ 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	-63.65%	-919.53%	-68.53%

Institutional & Insider Ownership

35.7% of Nextdoor shares are owned by institutional investors. Comparatively, 57.9% 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, 20.6% of shares of all “Services – Computer Programming And Data Processing” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Nextdoor and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	0	0	1.67
Nextdoor Competitors	99	204	221	14	2.28

Nextdoor presently has a consensus price target of $2.10, suggesting a potential upside of 26.13%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 119.91%. Given Nextdoor’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Nextdoor has less favorable growth aspects than its rivals.

Summary

Nextdoor rivals beat Nextdoor on 8 of the 13 factors compared.

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.