Nextdoor (NXDR) and Its Competitors Critical Analysis

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

Volatility and Risk

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Nextdoor and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	0	0	1.67
Nextdoor Competitors	99	204	221	14	2.28

Nextdoor currently has a consensus price target of $2.10, suggesting a potential upside of 25.37%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 136.35%. Given Nextdoor’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Nextdoor has less favorable growth aspects than its rivals.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$253.40 million	-$54.20 million	-11.96
Nextdoor Competitors	$248.23 million	-$80.63 million	-10.50

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

Profitability

This table compares Nextdoor and its rivals’ 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	-63.65%	-919.53%	-68.53%

Institutional and Insider Ownership

35.7% of Nextdoor shares are owned by institutional investors. Comparatively, 56.4% 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, 16.4% of shares of all “Services – Computer Programming And Data Processing” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Nextdoor beats its rivals 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.