Nextdoor (NYSE:KIND) and JFrog (NASDAQ:FROG) Financial Contrast

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

Analyst Ratings

This is a summary of current ratings for Nextdoor and JFrog, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	0	1	0	0	2.00
JFrog	1	1	20	0	2.86

Nextdoor currently has a consensus price target of $2.00, indicating a potential downside of 2.44%. JFrog has a consensus price target of $78.45, indicating a potential downside of 0.04%. Given JFrog’s stronger consensus rating and higher probable upside, analysts plainly believe JFrog is more favorable than Nextdoor.

Insider and Institutional Ownership

35.7% of Nextdoor shares are held by institutional investors. Comparatively, 85.0% of JFrog shares are held by institutional investors. 33.4% of Nextdoor shares are held by company insiders. Comparatively, 11.8% of JFrog shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Nextdoor and JFrog”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextdoor	$248.31 million	3.16	-$98.06 million	($0.24)	-8.54
JFrog	$531.84 million	17.87	-$71.82 million	($0.53)	-148.08

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nextdoor	-36.95%	-15.75%	-13.84%
JFrog	-10.93%	-4.61%	-3.11%

Volatility and Risk

Nextdoor has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, JFrog has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Summary

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

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.

About JFrog

JFrog Ltd. provides end-to-end hybrid software supply chain platform in the United States, Israel, India, and internationally. The company offers JFrog Artifactory, a package repository that allows teams and organizations to store, update, and manage their software packages; JFrog Curation that functions as a guardian outside the software development pipeline, controlling the admission of packages into an organization, primarily from open source or public repositories; JFrog Xray, which scans JFrog Artifactory to secure all software packages; JFrog Advanced Security, an optional add-on for select JFrog subscriptions; and JFrog Distribution that provides software package distribution. It also provides JFrog Artifactory Edge that utilizes and leverages metadata from JFrog Artifactory to facilitate the transfer of the incremental changes in software packages from their previous versions; JFrog Mission Control, a platform control panel that provides a view of moving pieces of an organization’s software supply chain workflow; JFrog Insight, a DevOps intelligence tool; JFrog Connect, a device management solution that allows companies to manage software updates and monitor performance in IoT device fleets; and JFrog Pipelines, a continuous integration and delivery tool for automating and orchestrating the movement of software packages. In addition, the company provides JFrog Pro that provides access to the universal version of JFrog Artifactory and ongoing updates, upgrades, and bug fixes; JFrog Pro X, a self-hosted-only subscription; JFrog Enterprise X, which offers cluster configuration, federated repositories, multi-region replication, larger enterprise-scale deployments, service-level agreement support, and deeper security; and JFrog Enterprise Plus, a full platform subscription option. It serves technology, financial services, retail, healthcare, and telecommunications organizations. JFrog Ltd. was incorporated in 2008 and is headquartered in Sunnyvale, California.