Head to Head Survey: Compass (NYSE:COMP) and Nextdoor (NYSE:KIND)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nextdoor	-36.95%	-15.75%	-13.84%
Compass	0.17%	1.11%	0.44%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Nextdoor and Compass, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	0	0	0	0	0.00
Compass	1	4	8	1	2.64

Compass has a consensus price target of $12.62, suggesting a potential upside of 0.65%. Given Compass’ stronger consensus rating and higher possible upside, analysts plainly believe Compass is more favorable than Nextdoor.

Volatility & Risk

Nextdoor has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Compass has a beta of 2.34, meaning that its stock price is 134% more volatile than the S&P 500.

Institutional and Insider Ownership

35.7% of Nextdoor shares are held by institutional investors. Comparatively, 67.0% of Compass shares are held by institutional investors. 33.4% of Nextdoor shares are held by company insiders. Comparatively, 2.9% of Compass shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Nextdoor and Compass”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextdoor	$248.31 million	3.50	-$98.06 million	($0.24)	-9.46
Compass	$6.96 billion	1.35	-$58.50 million	$0.02	627.20

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

Summary

Compass beats Nextdoor on 13 of the 15 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 Compass

Compass, Inc. provides real estate brokerage services in the United States. It operates a cloud-based platform that provides an integrated suite of software for customer relationship management, marketing, client service, operations, and other functionality in the real estate industry. The company offers mobile apps that allow agents to manage their business anytime and anywhere, as well as designs consumer-grade user interfaces, automated and simplified workflows for agent-client interactions, and insight-rich dashboards and reports. It also provides full-service title and escrow/settlement services to real estate agents' clients, real estate companies, and financial institutions relating to the closing of home purchases as well as the refinancing of home loans; and Compass Concierge, a program in which home sellers access to capital to front the cost of home improvement services. The company was formerly known as Urban Compass, Inc. and changed its name to Compass, Inc. in January 2021.Compass, Inc. was incorporated in 2012 and is headquartered in New York, New York.