Cardlytics (NASDAQ:CDLX – Get Free Report) and Nextdoor (NYSE:KIND – Get Free Report) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.
Earnings & Valuation
This table compares Cardlytics and Nextdoor’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cardlytics | $309.20 million | 1.79 | -$134.70 million | ($3.46) | -3.33 |
| Nextdoor | $218.31 million | 3.80 | -$147.76 million | ($0.38) | -5.55 |
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.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cardlytics | 0 | 1 | 3 | 0 | 2.75 |
| Nextdoor | 0 | 4 | 0 | 0 | 2.00 |
Cardlytics presently has a consensus price target of $15.50, suggesting a potential upside of 34.55%. Nextdoor has a consensus price target of $2.85, suggesting a potential upside of 35.07%. Given Nextdoor’s higher possible upside, analysts clearly believe Nextdoor is more favorable than Cardlytics.
Insider & Institutional Ownership
68.1% of Cardlytics shares are held by institutional investors. Comparatively, 35.7% of Nextdoor shares are held by institutional investors. 4.4% of Cardlytics shares are held by insiders. Comparatively, 47.6% of Nextdoor shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility & Risk
Cardlytics has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Nextdoor has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.
Profitability
This table compares Cardlytics and Nextdoor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cardlytics | -43.56% | -25.38% | -8.32% |
| Nextdoor | -67.69% | -24.22% | -20.71% |
Summary
Cardlytics beats Nextdoor on 9 of the 14 factors compared between the two stocks.
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.
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.
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