Financial Contrast: Nextdoor (NYSE:NXDR) and EverQuote (NASDAQ:EVER)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EverQuote	$692.52 million	1.33	$99.31 million	$3.08	8.29
Nextdoor	$257.65 million	3.43	-$54.20 million	($0.08)	-28.94

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 & Institutional Ownership

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

Profitability

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

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for EverQuote and Nextdoor, as provided by MarketBeat.

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

EverQuote presently has a consensus target price of $28.17, suggesting a potential upside of 10.26%. Nextdoor has a consensus target price of $2.80, suggesting a potential upside of 20.95%. Given Nextdoor’s higher probable upside, analysts clearly believe Nextdoor is more favorable than EverQuote.

Risk & Volatility

EverQuote has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Nextdoor has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Summary

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

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.

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.