36Kr (NASDAQ:KRKR – Get Free Report) and Nextdoor (NYSE:NXDR – Get Free Report) are both small-cap communication services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.
Volatility and Risk
36Kr has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Nextdoor has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.
Earnings & Valuation
This table compares 36Kr and Nextdoor”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| 36Kr | $32.59 million | 0.18 | $1.55 million | ($2.40) | -1.23 |
| Nextdoor | $274.60 million | 3.53 | -$54.20 million | ($0.08) | -31.81 |
36Kr has higher earnings, but lower revenue than Nextdoor. Nextdoor is trading at a lower price-to-earnings ratio than 36Kr, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings for 36Kr and Nextdoor, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 36Kr | 1 | 0 | 0 | 0 | 1.00 |
| Nextdoor | 1 | 2 | 1 | 0 | 2.00 |
Nextdoor has a consensus price target of $2.80, suggesting a potential upside of 10.02%. Given Nextdoor’s stronger consensus rating and higher probable upside, analysts clearly believe Nextdoor is more favorable than 36Kr.
Profitability
This table compares 36Kr and Nextdoor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| 36Kr | N/A | N/A | N/A |
| Nextdoor | -11.08% | -6.16% | -5.45% |
Insider and Institutional Ownership
0.1% of 36Kr shares are owned by institutional investors. Comparatively, 35.7% of Nextdoor shares are owned by institutional investors. 39.4% of 36Kr shares are owned by insiders. Comparatively, 33.5% of Nextdoor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Nextdoor beats 36Kr on 8 of the 14 factors compared between the two stocks.
About 36Kr
36Kr Holdings Inc. provides content and business services in the People's Republic of China. It creates and distributes various content, including insightful reports on companies and industries, timely market updates, thought-provoking editorials, and commentaries, as well as original video and audio content in various industries, such as technology, consumer, retail, healthcare, media and entertainment, and enterprise services. The company's business services include online advertising services; enterprise value-added services, such as integrated marketing, advertisement agent, online/offline event, and consulting services; and subscription services to individuals, institutional investors, and enterprises. 36Kr Holdings Inc. was founded in 2010 and is headquartered in Beijing, the People's Republic of China.
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.
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