Nextdoor (NYSE:NXDR – Get Free Report) and MediaAlpha (NYSE:MAX – Get Free Report) are both small-cap communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.
Institutional and Insider Ownership
35.7% of Nextdoor shares are held by institutional investors. Comparatively, 64.4% of MediaAlpha shares are held by institutional investors. 33.5% of Nextdoor shares are held by insiders. Comparatively, 14.6% of MediaAlpha shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and price targets for Nextdoor and MediaAlpha, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nextdoor | 1 | 2 | 1 | 0 | 2.00 |
| MediaAlpha | 0 | 5 | 3 | 1 | 2.56 |
Profitability
This table compares Nextdoor and MediaAlpha’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nextdoor | -11.08% | -6.16% | -5.45% |
| MediaAlpha | 7.94% | -301.42% | 28.23% |
Risk and Volatility
Nextdoor has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, MediaAlpha has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.
Valuation & Earnings
This table compares Nextdoor and MediaAlpha”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nextdoor | $257.65 million | 3.28 | -$54.20 million | ($0.08) | -27.69 |
| MediaAlpha | $1.22 billion | 0.59 | $25.62 million | $1.62 | 7.26 |
MediaAlpha has higher revenue and earnings than Nextdoor. Nextdoor is trading at a lower price-to-earnings ratio than MediaAlpha, indicating that it is currently the more affordable of the two stocks.
Summary
MediaAlpha beats Nextdoor on 10 of the 15 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 MediaAlpha
MediaAlpha, Inc., through its subsidiaries, operates an insurance customer acquisition platform in the United States. It optimizes customer acquisition in various verticals of property and casualty insurance, health insurance, and life insurance. The company was founded in 2014 and is headquartered in Los Angeles, California.
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