Nextdoor (NYSE:KIND) versus Radware (NASDAQ:RDWR) Head to Head Contrast

Nextdoor (NYSE:KIND) and Radware (NASDAQ:RDWR) 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

Nextdoor has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Radware has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Insider and Institutional Ownership

35.7% of Nextdoor shares are held by institutional investors. Comparatively, 73.1% of Radware shares are held by institutional investors. 33.4% of Nextdoor shares are held by company insiders. Comparatively, 21.6% of Radware 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.

Profitability

This table compares Nextdoor and Radware’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%
Radware	6.71%	7.21%	4.17%

Valuation & Earnings

This table compares Nextdoor and Radware”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextdoor	$248.31 million	2.54	-$98.06 million	($0.24)	-6.88
Radware	$301.85 million	3.73	$20.26 million	$0.45	59.40

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	1	0	0	1.50
Radware	1	1	2	0	2.25

Nextdoor presently has a consensus target price of $1.55, indicating a potential downside of 6.06%. Radware has a consensus target price of $30.00, indicating a potential upside of 12.23%. Given Radware’s stronger consensus rating and higher probable upside, analysts clearly believe Radware is more favorable than Nextdoor.

Summary

Radware beats Nextdoor on 12 of the 14 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 Radware

Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for cloud, on-premises, and software defined data centers worldwide. The company operates in two segments, Radware’s Core Business and The Hawks’ Business. It offers DefensePro provides automated DDoS protection; Radware Kubernetes, a web application firewall solution; and Cyber Controller, a unified solution for management, configuration, and attack lifecycle. The company also provides Alteon, an application delivery and security solution that manages application traffic across cloud and data center locations for optimizing availability and performance; and LinkProof NG, a multi-homing and enterprise gateway solution. In addition, it offers ERT Security Updates Subscription that provides protection from network elements, hosts, and applications; ERT Active Attackers Feed, a threat intelligence feed to protect against DDoS threats; ERT Protection Packages; Alteon Global Elastic License, a purchasing and deployment subscription; MSSP Portal, a DDoS detection and mitigation service portal; Location-based Mitigation that enables network traffic based on the geolocation mapping of IP subnets; and Cloud DDoS Protection Service, which offers a range of enterprise-grade DDoS protection services in the cloud. Further, the company provides Cloud Web DDoS Protection, Cloud WAF Service, Bot Manager, Cloud-Native Protector, and Cloud Application Protection Services, as well as technical support, professional, managed, and training and certification services. It sells its products primarily to independent distributors, including value added resellers, original equipment manufacturers, and system integrators. The company was founded in 1996 and is headquartered in Tel Aviv, Israel.