Financial Analysis: Nextdoor (NYSE:KIND) & DoubleVerify (NYSE:DV)

Nextdoor (NYSE:KIND) and DoubleVerify (NYSE:DV) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Nextdoor and DoubleVerify, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	0	2	1	0	2.33
DoubleVerify	1	7	13	0	2.57

Nextdoor presently has a consensus target price of $3.00, suggesting a potential upside of 79.64%. DoubleVerify has a consensus target price of $23.37, suggesting a potential upside of 56.84%. Given Nextdoor’s higher possible upside, analysts plainly believe Nextdoor is more favorable than DoubleVerify.

Risk & Volatility

Nextdoor has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, DoubleVerify has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nextdoor	-53.23%	-19.42%	-16.78%
DoubleVerify	10.33%	5.99%	5.18%

Earnings and Valuation

This table compares Nextdoor and DoubleVerify”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextdoor	$237.61 million	2.69	-$147.76 million	($0.25)	-6.68
DoubleVerify	$656.85 million	3.84	$71.47 million	$0.31	48.06

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

Insider and Institutional Ownership

35.7% of Nextdoor shares are owned by institutional investors. Comparatively, 97.3% of DoubleVerify shares are owned by institutional investors. 46.0% of Nextdoor shares are owned by company insiders. Comparatively, 3.0% of DoubleVerify shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

DoubleVerify beats Nextdoor on 11 of the 14 factors compared between the two stocks.

About Nextdoor

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 DoubleVerify

DoubleVerify Holdings, Inc. provides a software platform for digital media measurement, and data analytics in the United States and internationally. The company provides solutions to advertisers that enable advertisers to increase the effectiveness and quality and return on their digital advertising investments. It offers DV Authentic Ad, a metric of digital media quality, which evaluates the existence of fraud-free, brand-suitable, viewability, and geography for each digital ad; DV Authentic Attention that provides actionable, and comprehensive data to drive campaign performance; and Custom Contextual solution, which allows advertisers to match their ads to relevant content to maximize user engagement and drive campaign performance. In addition, the company provides DV Publisher suite, a solution for digital publishers to manage revenue and increase inventory yield by improving video delivery, identifying lost or unfilled sales, and aggregate data across all inventory sources; and DV Pinnacle, a service and analytics platform user interface that allows its customers to adjust and deploy controls for their media plan and track campaign performance metrics across channels, formats, and devices. Further, it offers software solutions are integrated in the digital advertising ecosystem, including programmatic platforms, social media channels, and digital publishers. It serves brands, publishers, and other supply-side customers covering various industry verticals, including consumer packaged goods, financial services, telecommunications, technology, automotive, and healthcare. The company was founded in 2008 and is headquartered in New York, New York.