Comparing Bumble (NASDAQ:BMBL) & Nextdoor (NYSE:KIND)

Bumble (NASDAQ:BMBL) and Nextdoor (NYSE:KIND) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Valuation and Earnings

This table compares Bumble and Nextdoor”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bumble	$1.05 billion	0.92	-$4.21 million	($4.89)	-1.82
Nextdoor	$218.31 million	4.36	-$147.76 million	($0.32)	-7.78

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

Risk and Volatility

Bumble has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Nextdoor has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bumble	-54.19%	3.31%	2.06%
Nextdoor	-53.23%	-19.42%	-16.78%

Analyst Ratings

This is a breakdown of current ratings for Bumble and Nextdoor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bumble	1	14	3	0	2.11
Nextdoor	0	2	0	0	2.00

Bumble presently has a consensus price target of $8.38, suggesting a potential downside of 6.00%. Nextdoor has a consensus price target of $2.75, suggesting a potential upside of 10.44%. Given Nextdoor’s higher possible upside, analysts plainly believe Nextdoor is more favorable than Bumble.

Institutional and Insider Ownership

94.9% of Bumble shares are held by institutional investors. Comparatively, 35.7% of Nextdoor shares are held by institutional investors. 7.8% of Bumble shares are held by insiders. Comparatively, 46.0% of Nextdoor shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Bumble beats Nextdoor on 9 of the 14 factors compared between the two stocks.

About Bumble

Bumble Inc. provides online dating and social networking platforms in North America, Europe, internationally. It owns and operates websites and applications that offers subscription and in-app purchases dating products. The company operates apps, including Bumble, a dating app built with women at the center, where women make the first move; Badoo, the web and mobile free-to-use dating app; Official app where users connect their profile with that of their partner enabling a shared, linked product experience; Bumble BFF and Bumble Bizz Modes that have a format similar to the date mode requiring users to set up profiles and matching users through yes and no votes, similar to the dating platform; and Bumble for Friends, a friendship app where people in all stages of life can meet people nearby and create meaningful platonic connections, as well as Fruitz app is centered around encouraging honesty and transparency by sharing dating intentions from the first touch point. Bumble Inc. was founded in 2006 in and is headquartered in Austin, Texas.

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.