Nextdoor (NXDR) and The Competition Critical Survey

Nextdoor (NYSE:NXDR) is one of 47 public companies in the “Services – Computer Programming And Data Processing” industry, but how does it compare to its peers? We will compare Nextdoor to similar companies based on the strength of its analyst recommendations, valuation, institutional ownership, risk, earnings, profitability and dividends.

Profitability

This table compares Nextdoor and its peers’ 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	-65.22%	-919.72%	-68.65%

Volatility & Risk

Nextdoor has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Nextdoor’s peers have a beta of 0.53, suggesting that their average share price is 47% less volatile than the S&P 500.

Insider and Institutional Ownership

35.7% of Nextdoor shares are held by institutional investors. Comparatively, 62.0% of shares of all “Services – Computer Programming And Data Processing” companies are held by institutional investors. 33.4% of Nextdoor shares are held by insiders. Comparatively, 15.5% of shares of all “Services – Computer Programming And Data Processing” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Nextdoor and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	0	0	1.67
Nextdoor Competitors	103	206	233	15	2.29

Nextdoor presently has a consensus price target of $2.10, indicating a potential upside of 31.66%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 95.16%. Given Nextdoor’s peers stronger consensus rating and higher probable upside, analysts plainly believe Nextdoor has less favorable growth aspects than its peers.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$257.65 million	-$54.20 million	-11.39
Nextdoor Competitors	$274.45 million	-$88.97 million	16.18

Nextdoor’s peers have higher revenue, but lower earnings than Nextdoor. Nextdoor is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Nextdoor peers beat Nextdoor 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.