NerdWallet, Inc. (NRDS) vs Nextdoor Holdings, Inc. (NXDR)

NerdWallet, Inc. and Nextdoor Holdings, Inc. are both Internet Content & Information companies. Nextdoor Holdings, Inc. is the larger, with a market value of $820.1M against $730.6M — 1.1× the size. Nextdoor Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; NerdWallet, Inc. trades at 14.6×. Nextdoor Holdings, Inc. grew revenue faster over the last twelve months: 12.3% against 11.3%. NerdWallet, Inc. has the higher net margin (6.06% vs −6.41%) and the higher return on invested capital (17.0% vs −69.8%). Across the 19 metrics below, NerdWallet, Inc. leads on 16 and Nextdoor Holdings, Inc. on 3.

Valuation

Metric NRDS NXDR Internet Content & Information median
P/E 14.61 n/m 12.38
P/S 0.83 2.88 0.93
P/B 2.16 1.99 1.24
Price to free cash flow 5.61 22.45 10.76
EV/EBITDA 6.57 n/m 10.74
EV/Sales 0.83 1.53 1.20
Earnings yield 6.85% (3.57%) (1.71%)
Free cash flow yield 17.82% 4.46% 4.26%

Profitability

Metric NRDS NXDR Internet Content & Information median
Gross margin 93.85% 83.77% 63.25%
Operating margin 8.25% (11.47%) (1.87%)
Net margin 6.06% (6.41%) (1.37%)
Free cash flow margin 14.83% 12.81% 3.47%
Return on equity 14.41% (4.34%) (1.19%)
Return on assets 11.50% (3.83%) 0.00%
Return on invested capital 17.03% (69.80%) 0.00%

Growth

Metric NRDS NXDR Internet Content & Information median
Revenue growth (TTM) 11.26% 12.26% 6.92%
EPS growth (last fiscal year) 68.42% 44.00% 34.37%
Revenue growth, 5-year CAGR 27.81% 15.88% 10.46%
Net income growth, 5-year CAGR 55.83% 0.00% 0.00%

Health

Metric NRDS NXDR Internet Content & Information median
Debt to equity 0.00 0.00 0.01
Current ratio 2.74 11.83 1.84
Net debt to EBITDA (0.88) 5.78 (0.53)

Dividend

Metric NRDS NXDR Internet Content & Information median
Dividend yield — — 1.19%
Payout ratio — — 0.27

Size

Metric NRDS NXDR Internet Content & Information median
Market cap 730.64m 820.12m 693.23m

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