Financial Analysis: Nextdoor (NXDR) & The Competition

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 related companies based on the strength of its profitability, valuation, analyst recommendations, dividends, earnings, institutional ownership and risk.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$257.65 million	-$54.20 million	-11.18
Nextdoor Competitors	$276.56 million	-$88.97 million	16.83

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.

Volatility and Risk

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Nextdoor and its peers, as provided by MarketBeat.

	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 target price of $2.10, indicating a potential upside of 34.19%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 103.30%. Given Nextdoor’s peers stronger consensus rating and higher probable upside, analysts plainly believe Nextdoor has less favorable growth aspects than its peers.

Insider & Institutional Ownership

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

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%

Summary

Nextdoor peers 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.