Nextdoor (NXDR) versus Its Rivals Critical Survey

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

Profitability

This table compares Nextdoor and its competitors’ 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%

Risk & Volatility

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

Institutional & Insider Ownership

35.7% of Nextdoor shares are owned by institutional investors. Comparatively, 63.1% of shares of all “Services – Computer Programming And Data Processing” companies are owned by institutional investors. 33.4% of Nextdoor shares are owned by company insiders. Comparatively, 20.1% of shares of all “Services – Computer Programming And Data Processing” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	0	0	1.67
Nextdoor Competitors	126	406	514	64	2.46

Nextdoor currently has a consensus price target of $2.10, suggesting a potential upside of 34.19%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 101.37%. Given Nextdoor’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Nextdoor has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Nextdoor and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$257.65 million	-$54.20 million	-11.18
Nextdoor Competitors	$286.98 million	-$88.97 million	18.18

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

Summary

Nextdoor competitors beat Nextdoor 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.