Contrasting Nextdoor (NYSE:KIND) and EverQuote (NASDAQ:EVER)
by Amy Steele · The Cerbat GemNextdoor (NYSE:KIND – Get Free Report) and EverQuote (NASDAQ:EVER – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.
Volatility & Risk
Nextdoor has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, EverQuote has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.
Insider and Institutional Ownership
35.7% of Nextdoor shares are held by institutional investors. Comparatively, 91.5% of EverQuote shares are held by institutional investors. 46.0% of Nextdoor shares are held by insiders. Comparatively, 29.8% of EverQuote shares are held by 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.
Analyst Ratings
This is a summary of recent recommendations for Nextdoor and EverQuote, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nextdoor | 0 | 3 | 0 | 0 | 2.00 |
| EverQuote | 0 | 0 | 6 | 0 | 3.00 |
Nextdoor currently has a consensus price target of $2.67, indicating a potential upside of 9.29%. EverQuote has a consensus price target of $29.58, indicating a potential upside of 32.60%. Given EverQuote’s stronger consensus rating and higher probable upside, analysts plainly believe EverQuote is more favorable than Nextdoor.
Valuation & Earnings
This table compares Nextdoor and EverQuote”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nextdoor | $228.09 million | 4.18 | -$147.76 million | ($0.36) | -6.78 |
| EverQuote | $318.92 million | 2.43 | -$51.29 million | ($1.41) | -15.82 |
EverQuote has higher revenue and earnings than Nextdoor. EverQuote is trading at a lower price-to-earnings ratio than Nextdoor, indicating that it is currently the more affordable of the two stocks.
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 | -65.63% | -22.69% | -19.48% |
| EverQuote | -8.55% | -13.24% | -8.99% |
Summary
EverQuote beats Nextdoor on 9 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 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.