EverCommerce (NASDAQ:EVCM – Get Free Report) and Nextdoor (NYSE:KIND – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for EverCommerce and Nextdoor, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EverCommerce | 2 | 6 | 2 | 0 | 2.00 |
| Nextdoor | 1 | 2 | 0 | 0 | 1.67 |
EverCommerce presently has a consensus target price of $10.71, indicating a potential downside of 8.50%. Nextdoor has a consensus target price of $1.62, indicating a potential upside of 15.48%. Given Nextdoor’s higher probable upside, analysts clearly believe Nextdoor is more favorable than EverCommerce.
Volatility & Risk
Valuation and Earnings
This table compares EverCommerce and Nextdoor”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EverCommerce | $588.91 million | 3.53 | $17.60 million | $0.09 | 130.11 |
| Nextdoor | $248.31 million | 2.16 | -$98.06 million | ($0.24) | -5.83 |
EverCommerce has higher revenue and earnings than Nextdoor. Nextdoor is trading at a lower price-to-earnings ratio than EverCommerce, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares EverCommerce and Nextdoor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EverCommerce | 2.99% | 2.49% | 1.30% |
| Nextdoor | -36.95% | -15.75% | -13.84% |
Insider and Institutional Ownership
97.9% of EverCommerce shares are held by institutional investors. Comparatively, 35.7% of Nextdoor shares are held by institutional investors. 10.4% of EverCommerce shares are held by company insiders. Comparatively, 33.4% of Nextdoor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
EverCommerce beats Nextdoor on 11 of the 14 factors compared between the two stocks.
About EverCommerce
EverCommerce Inc., together with its subsidiaries, provides integrated software-as-a-service solutions for service-based small and medium sized businesses in the United States and internationally. The company’s solutions include business management software that offers route-based dispatching, medical practice management, and gym member management solutions; billing and payment solutions comprising e-invoicing, mobile payments, and integrated payment processing; customer experience solution, which include reputation management and messaging solutions; and marketing technology solutions that cover websites, hosting, and digital lead generation. It also provides EverPro suite of solutions in home services; EverHealth suite of solutions within health services; and EverWell suite of solutions in fitness and wellness services. In addition, the company offers professional services, such as implementation, configuration, installation, or training services. It serves home service professionals, including home improvement contractors and home maintenance technicians; physician practices and therapists in the health services industry; and personal trainers and salon owners in the fitness and wellness sectors. The company was formerly known as PaySimple Holdings, Inc. and changed its name to EverCommerce Inc. in December 2020. EverCommerce Inc. was incorporated in 2016 and is headquartered in Denver, Colorado.
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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