Analyzing Nextdoor (NYSE:KIND) and DouYu International (NASDAQ:DOYU)

DouYu International (NASDAQ:DOYU) and Nextdoor (NYSE:KIND) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DouYu International	-4.39%	-2.92%	-2.38%
Nextdoor	-53.23%	-19.42%	-16.78%

Insider & Institutional Ownership

17.9% of DouYu International shares are held by institutional investors. Comparatively, 35.7% of Nextdoor shares are held by institutional investors. 17.3% of DouYu International shares are held by insiders. Comparatively, 46.0% of Nextdoor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

DouYu International has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Nextdoor has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for DouYu International and Nextdoor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DouYu International	0	3	0	0	2.00
Nextdoor	0	2	1	0	2.33

DouYu International presently has a consensus target price of $12.75, suggesting a potential upside of 104.98%. Nextdoor has a consensus target price of $3.00, suggesting a potential upside of 115.05%. Given Nextdoor’s stronger consensus rating and higher probable upside, analysts plainly believe Nextdoor is more favorable than DouYu International.

Earnings and Valuation

This table compares DouYu International and Nextdoor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DouYu International	$4.27 billion	0.05	$5.00 million	($1.32)	-4.71
Nextdoor	$247.28 million	2.18	-$147.76 million	($0.25)	-5.58

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

Summary

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

About DouYu International

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.

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.