Nextdoor Holdings, Inc. (NXDR) vs Yelp Inc. (YELP)

Nextdoor Holdings, Inc. and Yelp Inc. are both Internet Content & Information companies. Yelp Inc. is the larger, with a market value of $1.1B against $820.1M — 1.4× the size. Nextdoor Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Yelp Inc. trades at 9.8×. Nextdoor Holdings, Inc. grew revenue faster over the last twelve months: 12.3% against 1.50%. Yelp Inc. has the higher net margin (8.59% vs −6.41%) and the higher return on invested capital (16.6% vs −69.8%). Across the 19 metrics below, Yelp Inc. leads on 14 and Nextdoor Holdings, Inc. on 5.

Valuation

Metric NXDR YELP Internet Content & Information median
P/E n/m 9.80 12.38
P/S 2.88 0.78 0.93
P/B 1.99 1.77 1.24
Price to free cash flow 22.45 3.93 10.76
EV/EBITDA n/m 4.26 10.74
EV/Sales 1.53 0.78 1.20
Earnings yield (3.57%) 10.21% (1.71%)
Free cash flow yield 4.46% 25.43% 4.26%

Profitability

Metric NXDR YELP Internet Content & Information median
Gross margin 83.77% 89.65% 63.25%
Operating margin (11.47%) 11.73% (1.87%)
Net margin (6.41%) 8.59% (1.37%)
Free cash flow margin 12.81% 20.19% 3.47%
Return on equity (4.34%) 18.19% (1.19%)
Return on assets (3.83%) 12.84% 0.00%
Return on invested capital (69.80%) 16.61% 0.00%

Growth

Metric NXDR YELP Internet Content & Information median
Revenue growth (TTM) 12.26% 1.50% 6.92%
EPS growth (last fiscal year) 44.00% 19.15% 34.37%
Revenue growth, 5-year CAGR 15.88% 10.91% 10.46%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NXDR YELP Internet Content & Information median
Debt to equity 0.00 0.16 0.01
Current ratio 11.83 1.75 1.84
Net debt to EBITDA 5.78 (1.16) (0.53)

Dividend

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

Size

Metric NXDR YELP Internet Content & Information median
Market cap 820.12m 1.11b 693.23m

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