Financial Contrast: Phoenix New Media (NYSE:FENG) versus Nextdoor (NYSE:NXDR)

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Nextdoor and Phoenix New Media, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	1	0	2.00
Phoenix New Media	1	0	0	0	1.00

Nextdoor presently has a consensus price target of $2.80, suggesting a potential upside of 30.54%. Given Nextdoor’s stronger consensus rating and higher possible upside, analysts clearly believe Nextdoor is more favorable than Phoenix New Media.

Insider & Institutional Ownership

35.7% of Nextdoor shares are held by institutional investors. Comparatively, 6.3% of Phoenix New Media shares are held by institutional investors. 33.5% of Nextdoor shares are held by insiders. Comparatively, 10.9% of Phoenix New Media shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Nextdoor has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Phoenix New Media has a beta of -0.19, suggesting that its stock price is 119% less volatile than the S&P 500.

Earnings & Valuation

This table compares Nextdoor and Phoenix New Media”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextdoor	$257.65 million	3.18	-$54.20 million	($0.08)	-26.81
Phoenix New Media	$109.47 million	0.16	$50,000.00	$0.36	4.01

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

Profitability

This table compares Nextdoor and Phoenix New Media’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%
Phoenix New Media	3.62%	2.78%	1.87%

Summary

Nextdoor beats Phoenix New Media on 8 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 Phoenix New Media

Phoenix New Media Limited provides content on an integrated Internet platform in the People's Republic of China. The company operates through two segments, Net Advertising Services and Paid Services. It offers content and services through PC channel, mobile channel, and telecom operators, as well as transmits content to TV viewers, primarily through Phoenix TV. The company, through its website, ifeng.com, provides various interest-based content verticals, such as news, finance, video, automobiles, technology, entertainment, military, real estate, fashion, and sport; and offers interactive services, including comments posting and user surveys. Its mobile channel consists of ifeng News, a news application that provides newsfeeds and other contents in the form of text, image, live streaming, and video; ifeng Video, a video application, which offers video news, live broadcasting, Phoenix TV programs content, etc.; i.ifeng.com mobile Internet website; and digital reading applications. In addition, Phoenix New Media Limited offers mobile newspaper, mobile video, and mobile game services, as well as wireless value-added services. The company was incorporated in 1998 and is headquartered in Beijing, the People's Republic of China. Phoenix New Media Limited is a subsidiary of Phoenix Satellite Television (B.V.I.) Holding Limited.