Critical Contrast: Nextdoor (NYSE:KIND) versus EverCommerce (NASDAQ:EVCM)

EverCommerce (NASDAQ:EVCM) and Nextdoor (NYSE:KIND) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for EverCommerce and Nextdoor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EverCommerce	2	6	2	0	2.00
Nextdoor	1	2	0	0	1.67

EverCommerce currently has a consensus price target of $10.71, suggesting a potential downside of 5.68%. Nextdoor has a consensus price target of $1.62, suggesting a potential upside of 17.15%. Given Nextdoor’s higher possible upside, analysts plainly believe Nextdoor is more favorable than EverCommerce.

Profitability

This table compares EverCommerce and Nextdoor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EverCommerce	2.99%	2.49%	1.30%
Nextdoor	-36.95%	-15.75%	-13.84%

Volatility & Risk

EverCommerce has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Nextdoor has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Insider & Institutional Ownership

97.9% of EverCommerce shares are owned by institutional investors. Comparatively, 35.7% of Nextdoor shares are owned by institutional investors. 10.4% of EverCommerce shares are owned by company insiders. Comparatively, 33.4% of Nextdoor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EverCommerce	$588.91 million	3.43	$17.60 million	$0.09	126.22
Nextdoor	$248.31 million	2.13	-$98.06 million	($0.24)	-5.75

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

Summary

EverCommerce beats Nextdoor on 11 of the 14 factors compared between the two stocks.

About EverCommerce

EverCommerce Inc., together with its subsidiaries, provides integrated software-as-a-service solutions for service-based small and medium sized businesses in the United States and internationally. The company’s solutions include business management software that offers route-based dispatching, medical practice management, and gym member management solutions; billing and payment solutions comprising e-invoicing, mobile payments, and integrated payment processing; customer experience solution, which include reputation management and messaging solutions; and marketing technology solutions that cover websites, hosting, and digital lead generation. It also provides EverPro suite of solutions in home services; EverHealth suite of solutions within health services; and EverWell suite of solutions in fitness and wellness services. In addition, the company offers professional services, such as implementation, configuration, installation, or training services. It serves home service professionals, including home improvement contractors and home maintenance technicians; physician practices and therapists in the health services industry; and personal trainers and salon owners in the fitness and wellness sectors. The company was formerly known as PaySimple Holdings, Inc. and changed its name to EverCommerce Inc. in December 2020. EverCommerce Inc. was incorporated in 2016 and is headquartered in Denver, Colorado.

About Nextdoor

Nextdoor Holdings, Inc. operates a neighborhood network that connects neighbors, businesses, and public services in the United States and internationally. The company enables neighbors and organizations to get information, give and get help, and build connections. It also offers advertising solutions, designs to generate value for businesses for connection and sales expansion. The company is headquartered in San Francisco, California.