Nextdoor (NYSE:NXDR) and MediaAlpha (NYSE:MAX) Critical Review

Nextdoor (NYSE:NXDRGet Free Report) and MediaAlpha (NYSE:MAXGet 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

Nextdoor presently has a consensus target price of $2.80, suggesting a potential upside of 26.41%. MediaAlpha has a consensus target price of $14.29, suggesting a potential upside of 21.48%. Given Nextdoor’s higher possible upside, equities research analysts clearly believe Nextdoor is more favorable than MediaAlpha.

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

(Get Free Report)

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

(Get Free Report)

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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