Nextdoor (NYSE:KIND – Get Free Report) and Cardlytics (NASDAQ:CDLX – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
35.7% of Nextdoor shares are owned by institutional investors. Comparatively, 68.1% of Cardlytics shares are owned by institutional investors. 47.6% of Nextdoor shares are owned by insiders. Comparatively, 4.4% of Cardlytics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Nextdoor and Cardlytics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nextdoor | 0 | 4 | 0 | 0 | 2.00 |
| Cardlytics | 0 | 1 | 3 | 0 | 2.75 |
Profitability
This table compares Nextdoor and Cardlytics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nextdoor | -67.69% | -24.22% | -20.71% |
| Cardlytics | -43.56% | -25.38% | -8.32% |
Earnings and Valuation
This table compares Nextdoor and Cardlytics’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nextdoor | $218.31 million | 3.80 | -$147.76 million | ($0.38) | -5.55 |
| Cardlytics | $309.20 million | 1.79 | -$134.70 million | ($3.46) | -3.33 |
Cardlytics has higher revenue and earnings than Nextdoor. Nextdoor is trading at a lower price-to-earnings ratio than Cardlytics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Nextdoor has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Cardlytics has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.
Summary
Cardlytics beats Nextdoor on 9 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 Cardlytics
Cardlytics, Inc. operates an advertising platform in the United States and the United Kingdom. It offers Cardlytics platform, a proprietary native bank advertising channel that enables marketers to reach customers through their network of financial institution partners through digital channels, such as online, mobile applications, email, and various real-time notifications; and Bridg platform, a customer data platform which utilizes point-of-sale data and enables marketers to perform analytics and targeted loyalty marketing, as well as measure the impact of their marketing. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.
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