Analyzing Nextdoor (NXDR) & Its Peers

Nextdoor (NYSE:NXDR) is one of 46 publicly-traded companies in the “Services – Computer Programming And Data Processing” industry, but how does it contrast to its peers? We will compare Nextdoor to similar businesses based on the strength of its profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Risk and Volatility

Nextdoor has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Nextdoor’s peers have a beta of 0.53, meaning that their average share price is 47% less volatile than the S&P 500.

Insider and Institutional Ownership

35.7% of Nextdoor shares are held by institutional investors. Comparatively, 63.1% 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, 20.1% 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.

Analyst Ratings

This is a summary of current recommendations for Nextdoor and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	0	0	1.67
Nextdoor Competitors	125	404	514	64	2.47

Nextdoor currently has a consensus price target of $2.10, indicating a potential upside of 34.19%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 115.77%. Given Nextdoor’s peers stronger consensus rating and higher possible upside, analysts clearly believe Nextdoor has less favorable growth aspects than its peers.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$257.65 million	-$54.20 million	-11.18
Nextdoor Competitors	$283.43 million	-$88.97 million	18.30

Nextdoor’s peers have higher revenue, but lower earnings than Nextdoor. 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	-65.22%	-919.72%	-68.65%

Summary

Nextdoor peers beat Nextdoor on 7 of the 13 factors compared.

Nextdoor Company Profile

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.