Analyzing nCino (NASDAQ:NCNO) and Nextdoor (NYSE:KIND)

nCino (NASDAQ:NCNO) and Nextdoor (NYSE:KIND) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.

Volatility & Risk

nCino has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Nextdoor has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
nCino	0.87%	4.75%	3.10%
Nextdoor	-36.95%	-15.75%	-13.84%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
nCino	$594.78 million	3.37	$5.18 million	$0.05	349.60
Nextdoor	$248.31 million	2.45	-$98.06 million	($0.24)	-6.63

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

Insider and Institutional Ownership

94.8% of nCino shares are held by institutional investors. Comparatively, 35.7% of Nextdoor shares are held by institutional investors. 5.7% of nCino shares are held by company insiders. Comparatively, 33.4% of Nextdoor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for nCino and Nextdoor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
nCino	1	6	11	2	2.70
Nextdoor	1	1	0	0	1.50

nCino presently has a consensus target price of $26.07, indicating a potential upside of 49.12%. Nextdoor has a consensus target price of $1.55, indicating a potential downside of 2.52%. Given nCino’s stronger consensus rating and higher probable upside, research analysts clearly believe nCino is more favorable than Nextdoor.

Summary

nCino beats Nextdoor on 13 of the 15 factors compared between the two stocks.

About nCino

nCino, Inc., a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. Its nCino Bank Operating System connects financial institution employees, clients and third parties on a single cloud-based platform which include client onboarding, deposit account opening, loan origination, end-to-end mortgage suite, and powerful ecosystem. The company's nIQ, an application suite that utilizes data analytics and artificial intelligence and machine learning to provide its customers with automation and insights into their operations, such as tools for analyzing, measuring, and managing credit risk, as well as to enhance their ability to comply with regulatory requirements. It also offers SimpleNexus, a cloud-based mobile-first homeownership software solution. The company serves financial institution customers, including global financial institutions, enterprise banks, regional banks, community banks, credit unions, new market entrants, and independent mortgage banks through business development representatives, account executives, field sales engineers, and customer success managers. nCino, Inc. was founded in 2011 and is headquartered in Wilmington, North Carolina.

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.