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 $1.0B against $641.2M — 1.6× the size. Nextdoor Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; NerdWallet, Inc. trades at 11.0×. NerdWallet, Inc. grew revenue faster over the last twelve months: 11.5% against 9.79%. NerdWallet, Inc. has the higher net margin (7.56% vs −11.1%) and the higher return on invested capital (20.9% vs −87.4%). Across the 19 metrics below, NerdWallet, Inc. leads on 18 and Nextdoor Holdings, Inc. on 1.

Valuation

Metric NRDS NXDR Internet Content & Information median
P/E 11.02 n/m 11.54
P/S 0.76 3.41 0.86
P/B 2.00 2.28 1.20
Price to free cash flow 4.44 76.39 9.63
EV/EBITDA 5.16 n/m 8.68
EV/Sales 0.77 2.04 1.18
Earnings yield 9.07% (3.07%) (2.42%)
Free cash flow yield 22.54% 1.31% 2.27%

Profitability

Metric NRDS NXDR Internet Content & Information median
Gross margin 93.50% 84.19% 66.84%
Operating margin 10.23% (16.62%) (3.41%)
Net margin 7.56% (11.08%) (3.02%)
Free cash flow margin 17.12% 4.47% 1.75%
Return on equity 18.16% (7.24%) 0.00%
Return on assets 14.54% (6.39%) (0.36%)
Return on invested capital 20.85% (87.38%) 0.00%

Growth

Metric NRDS NXDR Internet Content & Information median
Revenue growth (TTM) 11.51% 9.79% 2.65%
EPS growth (last fiscal year) 68.42% 44.00% 34.45%
Revenue growth, 5-year CAGR 27.81% 15.88% 9.73%
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 2.62 13.27 1.82
Net debt to EBITDA (0.88) 5.78 (0.48)

Dividend

Metric NRDS NXDR Internet Content & Information median
Dividend yield — — 1.07%
Payout ratio — — 0.28

Size

Metric NRDS NXDR Internet Content & Information median
Market cap 641.15m 1.01b 318.52m

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