AvePoint (NASDAQ:AVPT – Get Free Report) and Nextdoor (NYSE:KIND – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Profitability
This table compares AvePoint and Nextdoor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AvePoint | 10.55% | 10.52% | 6.48% |
| Nextdoor | -36.95% | -15.75% | -13.84% |
Institutional & Insider Ownership
44.5% of AvePoint shares are held by institutional investors. Comparatively, 35.7% of Nextdoor shares are held by institutional investors. 22.7% of AvePoint shares are held by insiders. Comparatively, 33.4% of Nextdoor shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
Analyst Recommendations
This is a summary of current ratings and target prices for AvePoint and Nextdoor, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AvePoint | 0 | 6 | 10 | 0 | 2.63 |
| Nextdoor | 0 | 1 | 0 | 0 | 2.00 |
AvePoint presently has a consensus target price of $16.44, suggesting a potential upside of 59.47%. Nextdoor has a consensus target price of $2.00, suggesting a potential downside of 7.83%. Given AvePoint’s stronger consensus rating and higher possible upside, equities research analysts clearly believe AvePoint is more favorable than Nextdoor.
Valuation and Earnings
This table compares AvePoint and Nextdoor”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AvePoint | $419.50 million | 5.21 | $34.80 million | $0.21 | 49.10 |
| Nextdoor | $248.31 million | 3.34 | -$98.06 million | ($0.24) | -9.04 |
AvePoint has higher revenue and earnings than Nextdoor. Nextdoor is trading at a lower price-to-earnings ratio than AvePoint, indicating that it is currently the more affordable of the two stocks.
Summary
AvePoint beats Nextdoor on 12 of the 14 factors compared between the two stocks.
About AvePoint
AvePoint, Inc. provides cloud-native data management software platform in North America, Europe, Middle East, Africa, and Asia Pacific. It also offers software-as-a-service solutions and productivity applications. The company offers modularity and cloud services architecture to address critical challenges and the management of data to organizations that leverage third-party cloud vendors, including Microsoft, Salesforce, Google, AWS, Box, DropBox, and others; license and support; and maintenance services. AvePoint, Inc. was incorporated in 2001 and is headquartered in Jersey City, New Jersey.
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.
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