Analyzing Nextdoor (NXDR) and Its Competitors

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

Analyst Recommendations

This is a summary of recent recommendations for Nextdoor and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	1	0	0	1.50
Nextdoor Competitors	98	203	220	14	2.28

As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 120.17%. Given Nextdoor’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Nextdoor has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

35.7% of Nextdoor shares are owned by institutional investors. Comparatively, 57.9% 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, 20.6% of shares of all “Services – Computer Programming And Data Processing” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Nextdoor and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$257.65 million	-$98.06 million	-10.78
Nextdoor Competitors	$250.54 million	-$55.65 million	-10.18

Nextdoor has higher revenue, but lower earnings than its competitors. 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.

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%	-10.08%
Nextdoor Competitors	-63.65%	-920.16%	-68.75%

Volatility and Risk

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

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.