Head to Head Review: Nextdoor (NYSE:KIND) and Professional Diversity Network (NASDAQ:IPDN)

Nextdoor (NYSE:KIND) and Professional Diversity Network (NASDAQ:IPDN) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Risk and Volatility

Nextdoor has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Professional Diversity Network has a beta of 13.04, suggesting that its share price is 1,204% more volatile than the S&P 500.

Institutional and Insider Ownership

35.7% of Nextdoor shares are held by institutional investors. Comparatively, 27.8% of Professional Diversity Network shares are held by institutional investors. 46.0% of Nextdoor shares are held by insiders. Comparatively, 3.5% of Professional Diversity Network shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Nextdoor and Professional Diversity Network, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	0	3	0	0	2.00
Professional Diversity Network	0	0	0	0	N/A

Nextdoor presently has a consensus target price of $2.75, indicating a potential upside of 7.00%. Given Nextdoor’s higher possible upside, analysts plainly believe Nextdoor is more favorable than Professional Diversity Network.

Earnings and Valuation

This table compares Nextdoor and Professional Diversity Network’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextdoor	$218.31 million	4.59	-$147.76 million	($0.36)	-7.14
Professional Diversity Network	$7.70 million	0.71	-$4.31 million	($0.38)	-1.24

Professional Diversity Network has lower revenue, but higher earnings than Nextdoor. Nextdoor is trading at a lower price-to-earnings ratio than Professional Diversity Network, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nextdoor and Professional Diversity Network’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nextdoor	-64.19%	-23.84%	-20.36%
Professional Diversity Network	-54.12%	-186.84%	-65.87%

Summary

Nextdoor beats Professional Diversity Network on 8 of the 12 factors compared between the two stocks.

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.

About Professional Diversity Network

Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. It operates through three segments: Professional Diversity Network (PDN Network), National Association of Professional Women (NAPW Network), and RemoteMore USA (RemoteMore). The company offers online professional job seeking communities that offers recruitment services, such as single and multiple job postings, recruitment media, talent recruitment communities, corporate memberships, hiring campaign marketing and advertising, e-newsletter marketing, and research and outreach services to various cultural groups and employers. It also provides consumer advertising and consumer marketing solutions through advertising and job postings on its websites; and contracted software development services. In addition, the company operates a women-only professional networking organization; and offers companies with talented engineers to provide solutions to their software needs. Professional Diversity Network, Inc. was incorporated in 2003 and is headquartered in Chicago, Illinois.