Nextdoor (NYSE:NXDR – Get Free Report) and Bigcommerce (NASDAQ:BIGC – Get Free Report) are both small-cap services companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.
Earnings and Valuation
This table compares Nextdoor and Bigcommerce”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nextdoor | $257.65 million | 3.18 | -$54.20 million | ($0.11) | -19.50 |
| Bigcommerce | $334.94 million | 0.74 | -$17.62 million | ($0.22) | -14.00 |
Volatility and Risk
Nextdoor has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Bigcommerce has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.
Insider and Institutional Ownership
35.7% of Nextdoor shares are held by institutional investors. Comparatively, 79.2% of Bigcommerce shares are held by institutional investors. 33.4% of Nextdoor shares are held by company insiders. Comparatively, 5.0% of Bigcommerce shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Nextdoor and Bigcommerce’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nextdoor | -16.47% | -9.22% | -8.13% |
| Bigcommerce | N/A | N/A | N/A |
Analyst Ratings
This is a summary of current ratings for Nextdoor and Bigcommerce, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nextdoor | 1 | 3 | 0 | 0 | 1.75 |
| Bigcommerce | 0 | 0 | 1 | 0 | 3.00 |
Nextdoor currently has a consensus price target of $2.18, indicating a potential upside of 1.40%. Bigcommerce has a consensus price target of $11.00, indicating a potential upside of 257.14%. Given Bigcommerce’s stronger consensus rating and higher probable upside, analysts plainly believe Bigcommerce is more favorable than Nextdoor.
Summary
Bigcommerce beats Nextdoor on 10 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 Bigcommerce
BigCommerce Holdings, Inc. operates a software-as-a-service platform for small businesses, mid-markets, and large enterprises in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company’s platform provides various services for launching and scaling e-commerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integrations. As of December 31, 2021, it served approximately 60,000 online stores across industries. BigCommerce Holdings, Inc. was founded in 2009 and is headquartered in Austin, Texas.
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