Analyzing 36Kr (NASDAQ:KRKR) and Nextdoor (NYSE:NXDR)

Nextdoor (NYSE:NXDR) and 36Kr (NASDAQ:KRKR) are both small-cap communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Risk & Volatility

Nextdoor has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, 36Kr has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Nextdoor and 36Kr, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	1	0	2.00
36Kr	1	0	0	0	1.00

Nextdoor currently has a consensus price target of $2.80, suggesting a potential upside of 15.23%. Given Nextdoor’s stronger consensus rating and higher possible upside, analysts plainly believe Nextdoor is more favorable than 36Kr.

Profitability

This table compares Nextdoor and 36Kr’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%
36Kr	N/A	N/A	N/A

Earnings and Valuation

This table compares Nextdoor and 36Kr”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextdoor	$274.60 million	3.37	-$54.20 million	($0.08)	-30.38
36Kr	$32.59 million	0.18	$1.55 million	($2.40)	-1.24

36Kr has lower revenue, but higher earnings than Nextdoor. Nextdoor is trading at a lower price-to-earnings ratio than 36Kr, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

35.7% of Nextdoor shares are held by institutional investors. Comparatively, 0.1% of 36Kr shares are held by institutional investors. 33.5% of Nextdoor shares are held by insiders. Comparatively, 39.4% of 36Kr shares are held by 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.

Summary

Nextdoor beats 36Kr on 8 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 36Kr

36Kr Holdings Inc. provides content and business services in the People's Republic of China. It creates and distributes various content, including insightful reports on companies and industries, timely market updates, thought-provoking editorials, and commentaries, as well as original video and audio content in various industries, such as technology, consumer, retail, healthcare, media and entertainment, and enterprise services. The company's business services include online advertising services; enterprise value-added services, such as integrated marketing, advertisement agent, online/offline event, and consulting services; and subscription services to individuals, institutional investors, and enterprises. 36Kr Holdings Inc. was founded in 2010 and is headquartered in Beijing, the People's Republic of China.