Comparing Nextdoor (NYSE:KIND) and Compass (NYSE:COMP)

Nextdoor (NYSE:KINDGet Free Report) and Compass (NYSE:COMPGet Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

35.7% of Nextdoor shares are owned by institutional investors. Comparatively, 67.1% of Compass shares are owned by institutional investors. 33.4% of Nextdoor shares are owned by insiders. Comparatively, 2.9% of Compass shares are owned 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Nextdoor -36.95% -15.75% -13.84%
Compass 0.17% 1.11% 0.44%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nextdoor $248.31 million 3.42 -$98.06 million ($0.24) -9.25
Compass $8.31 billion 1.02 -$58.50 million $0.02 569.05

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nextdoor 0 0 0 0 0.00
Compass 1 4 8 1 2.64

Compass has a consensus price target of $12.63, suggesting a potential upside of 10.93%. Given Compass’ stronger consensus rating and higher probable upside, analysts clearly believe Compass is more favorable than Nextdoor.

Volatility & Risk

Nextdoor has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Compass has a beta of 2.43, suggesting that its stock price is 143% more volatile than the S&P 500.

Summary

Compass beats Nextdoor on 13 of the 15 factors compared between the two stocks.

About Nextdoor

(Get Free Report)

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 Compass

(Get Free Report)

Compass, Inc. provides real estate brokerage services in the United States. It operates a cloud-based platform that provides an integrated suite of software for customer relationship management, marketing, client service, operations, and other functionality in the real estate industry. The company offers mobile apps that allow agents to manage their business anytime and anywhere, as well as designs consumer-grade user interfaces, automated and simplified workflows for agent-client interactions, and insight-rich dashboards and reports. It also provides full-service title and escrow/settlement services to real estate agents' clients, real estate companies, and financial institutions relating to the closing of home purchases as well as the refinancing of home loans; and Compass Concierge, a program in which home sellers access to capital to front the cost of home improvement services. The company was formerly known as Urban Compass, Inc. and changed its name to Compass, Inc. in January 2021.Compass, Inc. was incorporated in 2012 and is headquartered in New York, New York.

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