Head-To-Head Analysis: Nextdoor (NXDR) and Its Rivals

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

Volatility & Risk

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

Earnings & Valuation

This table compares Nextdoor and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$257.65 million	-$54.20 million	-12.50
Nextdoor Competitors	$254.61 million	-$80.63 million	-12.44

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

Profitability

This table compares Nextdoor and its peers’ 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	-64.93%	-919.57%	-68.56%

Analyst Ratings

This is a summary of recent ratings and target prices for Nextdoor and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	0	0	1.67
Nextdoor Competitors	100	205	223	14	2.28

Nextdoor currently has a consensus price target of $2.10, suggesting a potential upside of 20.00%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 114.13%. Given Nextdoor’s peers stronger consensus rating and higher possible upside, analysts clearly believe Nextdoor has less favorable growth aspects than its peers.

Institutional and Insider Ownership

35.7% of Nextdoor shares are held by institutional investors. Comparatively, 57.9% of shares of all “Services – Computer Programming And Data Processing” companies are held by institutional investors. 33.4% of Nextdoor shares are held by insiders. Comparatively, 20.6% of shares of all “Services – Computer Programming And Data Processing” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Nextdoor beats its peers on 7 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.