Head-To-Head Contrast: EverQuote (NASDAQ:EVER) vs. Nextdoor (NYSE:KIND)

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

Insider and Institutional Ownership

91.5% of EverQuote shares are owned by institutional investors. Comparatively, 35.7% of Nextdoor shares are owned by institutional investors. 29.8% of EverQuote shares are owned by company insiders. Comparatively, 46.0% of Nextdoor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

EverQuote has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Nextdoor has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for EverQuote and Nextdoor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EverQuote	0	0	6	0	3.00
Nextdoor	0	3	0	0	2.00

EverQuote currently has a consensus target price of $29.58, suggesting a potential upside of 32.60%. Nextdoor has a consensus target price of $2.67, suggesting a potential upside of 9.29%. Given EverQuote’s stronger consensus rating and higher probable upside, research analysts plainly believe EverQuote is more favorable than Nextdoor.

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	-8.55%	-13.24%	-8.99%
Nextdoor	-65.63%	-22.69%	-19.48%

Valuation and Earnings

This table compares EverQuote 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
EverQuote	$318.92 million	2.43	-$51.29 million	($1.41)	-15.82
Nextdoor	$228.09 million	4.18	-$147.76 million	($0.36)	-6.78

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.

Summary

EverQuote beats Nextdoor on 9 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 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.