Head to Head Contrast: EverQuote (NASDAQ:EVER) vs. Nextdoor (NYSE:NXDR)

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

Volatility & Risk

Nextdoor has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, EverQuote has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextdoor	$257.65 million	3.44	-$54.20 million	($0.08)	-29.06
EverQuote	$755.20 million	1.23	$99.31 million	$3.08	8.35

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

Insider and Institutional Ownership

35.7% of Nextdoor shares are owned by institutional investors. Comparatively, 91.5% of EverQuote shares are owned by institutional investors. 33.5% of Nextdoor shares are owned by insiders. Comparatively, 23.7% of EverQuote shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nextdoor	-11.08%	-6.16%	-5.45%
EverQuote	15.16%	50.29%	36.69%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Nextdoor and EverQuote, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	1	0	2.00
EverQuote	1	1	6	0	2.62

Nextdoor currently has a consensus target price of $2.80, indicating a potential upside of 20.43%. EverQuote has a consensus target price of $28.17, indicating a potential upside of 9.56%. Given Nextdoor’s higher possible upside, equities analysts clearly believe Nextdoor is more favorable than EverQuote.

Summary

EverQuote beats Nextdoor on 10 of the 14 factors compared between the two stocks.

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.

About EverQuote

EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.