Analyzing Nextdoor (NYSE:KIND) and So-Young International (NASDAQ:SY)

Nextdoor (NYSE:KIND) and So-Young International (NASDAQ:SY) are both small-cap communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Institutional and Insider Ownership

35.7% of Nextdoor shares are held by institutional investors. Comparatively, 35.3% of So-Young International shares are held by institutional investors. 33.4% of Nextdoor shares are held by insiders. Comparatively, 16.7% of So-Young International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Nextdoor and So-Young International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nextdoor	-36.95%	-15.75%	-13.84%
So-Young International	-15.59%	-13.95%	-9.10%

Valuation and Earnings

This table compares Nextdoor and So-Young International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextdoor	$248.31 million	3.57	-$98.06 million	($0.24)	-9.67
So-Young International	$217.84 million	1.12	-$34.65 million	($0.36)	-6.67

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Nextdoor and So-Young International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	0	0	0	0	0.00
So-Young International	1	0	0	0	1.00

Risk and Volatility

Nextdoor has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, So-Young International has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500.

Summary

So-Young International beats Nextdoor on 7 of the 12 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 So-Young International

So-Young International Inc. operates an online platform for consumption healthcare services in the People's Republic of China. The company offers So-Young Mobile App that offers users medical aesthetic knowledge and experience to reach an informed medical aesthetic treatment decision and make reservations for treatment with medical professionals and medical aesthetic institutions; So-Young Beauty which provides similar interfaces and functions as the mobile app, as well as serves as additional access points to the platform; and medical aesthetic community content through its website soyoung.com. It provides content in various media formats on its online platform generated by users, including professional generated, content from in-house editorial team that shares opinions on specific new medical procedures and trends; user generated content comprising Beauty Diaries that provides details about medical institution, doctor, price, and other information on the treatment; professional user generated, contents from the medical aesthetic influencers; and doctor generated, content from doctors to generate knowledge. In addition, the company offers consumption healthcare services, including dermatology, dentistry and orthodontics, physical examinations, gynecology, and postnatal care; reservation services; and software as a service. Further, it engages in research and development, production, sales, and agency of laser and other optoelectronic medical beauty equipment; manufacture and sells light therapy device, surgical laser device and other equipment; internet information and technology advisory; online medical treatment and consultation; management consulting; internet culture; micro finance services, as well as sells cosmetics products. The company was founded in 2013 and is headquartered in Beijing, China.