ZoomInfo Technologies (NASDAQ:GTM – Get Free Report) and Nextdoor (NYSE:NXDR – Get Free Report) are both small-cap communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Profitability
This table compares ZoomInfo Technologies and Nextdoor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ZoomInfo Technologies | -43.01% | 20.16% | 4.33% |
| Nextdoor | -11.08% | -6.16% | -5.45% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for ZoomInfo Technologies and Nextdoor, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ZoomInfo Technologies | 7 | 10 | 1 | 0 | 1.67 |
| Nextdoor | 1 | 2 | 1 | 0 | 2.00 |
Valuation and Earnings
This table compares ZoomInfo Technologies and Nextdoor”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ZoomInfo Technologies | $1.25 billion | 0.94 | $124.20 million | ($1.86) | -2.16 |
| Nextdoor | $257.65 million | 3.69 | -$54.20 million | ($0.08) | -31.19 |
ZoomInfo Technologies has higher revenue and earnings than Nextdoor. Nextdoor is trading at a lower price-to-earnings ratio than ZoomInfo Technologies, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
95.5% of ZoomInfo Technologies shares are held by institutional investors. Comparatively, 35.7% of Nextdoor shares are held by institutional investors. 9.9% of ZoomInfo Technologies shares are held by company insiders. Comparatively, 33.5% of Nextdoor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
ZoomInfo Technologies has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Nextdoor has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.
Summary
ZoomInfo Technologies beats Nextdoor on 7 of the 13 factors compared between the two stocks.
About ZoomInfo Technologies
ZoomInfo Technologies Inc., through its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally. The company’s cloud-based platform provides information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage through automated sales tools, and track progress through the deal cycle. It serves enterprises, mid-market companies, and down to small businesses that operate in various industry verticals, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. ZoomInfo Technologies Inc. was founded in 2007 and is headquartered in Vancouver, Washington.
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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