Head to Head Survey: Meta Platforms (NASDAQ:META) & Nextdoor (NYSE:KIND)

Meta Platforms (NASDAQ:META) and Nextdoor (NYSE:KIND) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Institutional and Insider Ownership

79.9% of Meta Platforms shares are owned by institutional investors. Comparatively, 35.7% of Nextdoor shares are owned by institutional investors. 13.7% of Meta Platforms shares are owned by company insiders. Comparatively, 46.0% of Nextdoor shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Meta Platforms and Nextdoor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Meta Platforms	$134.90 billion	11.47	$39.10 billion	$21.23	28.86
Nextdoor	$237.61 million	3.88	-$147.76 million	($0.32)	-7.55

Meta Platforms has higher revenue and earnings than Nextdoor. Nextdoor is trading at a lower price-to-earnings ratio than Meta Platforms, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Meta Platforms has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Nextdoor has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Meta Platforms and Nextdoor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Meta Platforms	2	4	35	2	2.86
Nextdoor	0	2	0	0	2.00

Meta Platforms presently has a consensus target price of $650.05, suggesting a potential upside of 6.08%. Nextdoor has a consensus target price of $2.75, suggesting a potential upside of 13.87%. Given Nextdoor’s higher possible upside, analysts clearly believe Nextdoor is more favorable than Meta Platforms.

Profitability

This table compares Meta Platforms and Nextdoor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Meta Platforms	35.55%	35.60%	23.66%
Nextdoor	-53.23%	-19.42%	-16.78%

Summary

Meta Platforms beats Nextdoor on 13 of the 15 factors compared between the two stocks.

About Meta Platforms

Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately. The Reality Labs segment provides augmented and virtual reality related products comprising consumer hardware, software, and content that help people feel connected, anytime, and anywhere. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. The company was incorporated in 2004 and is headquartered in Menlo Park, California

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.