Contrasting Nextdoor (NYSE:KIND) and Aurora Mobile (NASDAQ:JG)

Aurora Mobile (NASDAQ:JGGet Free Report) and Nextdoor (NYSE:KINDGet Free Report) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Profitability

This table compares Aurora Mobile and Nextdoor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aurora Mobile -21.65% -30.47% -8.34%
Nextdoor -67.69% -24.22% -20.71%

Valuation & Earnings

This table compares Aurora Mobile 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
Aurora Mobile $290.23 million 0.06 -$8.75 million ($1.60) -1.94
Nextdoor $218.31 million 3.66 -$147.76 million ($0.38) -5.34

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

Volatility & Risk

Aurora Mobile has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Nextdoor has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Aurora Mobile and Nextdoor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aurora Mobile 0 0 1 0 3.00
Nextdoor 0 4 0 0 2.00

Aurora Mobile presently has a consensus target price of $7.00, indicating a potential upside of 125.81%. Nextdoor has a consensus target price of $2.85, indicating a potential upside of 40.39%. Given Aurora Mobile’s stronger consensus rating and higher possible upside, analysts clearly believe Aurora Mobile is more favorable than Nextdoor.

Insider and Institutional Ownership

85.5% of Aurora Mobile shares are held by institutional investors. Comparatively, 35.7% of Nextdoor shares are held by institutional investors. 31.2% of Aurora Mobile shares are held by company insiders. Comparatively, 47.6% of Nextdoor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Aurora Mobile beats Nextdoor on 9 of the 14 factors compared between the two stocks.

About Aurora Mobile

(Get Free Report)

Aurora Mobile Limited, through its subsidiaries, provides a range of developer services in China. The company provides push notification, instant messaging, analytics, sharing and short message service, one-click verification, and other services. The company offers real-time market intelligence solutions, such as product iApp, which provides analysis and statistical results on the usage and trends of mobile apps to investment funds and corporations. It also provides financial risk management solutions to assist financial institutions, licensed lenders, and credit card companies in making informed lending and credit decisions; and location-based intelligence solutions to help retailers and other traditional brick-and-mortar industries, such as real estate developers, track and analyze foot traffic, conduct targeted marketing, and make more informed and impactful operating decisions, such as site selection. In addition, the company offers targeted marketing solutions to help advertisers to target the right audience with the right content at the right time; application programming interfaces that create connectivity and automate the process of message exchange between the mobile apps and its backend network; an interactive web-based service dashboard that allows app developers to utilize and monitor its services through controls on an ongoing basis; and value added services, such as Advertisement SAAS, a data management platform service, which provides tagged and de-identified population data package; JG Alliance, an integrated marketing campaign services to advertising customers; and AD Mediation Platform to help mobile app developers access other mainstream advertising platforms. It primarily serves mobile app developers in a range of industries, such as media, entertainment, gaming, financial services, tourism, ecommerce, education, and healthcare. It has a strategic partnership with Zhipu AI to develop AI applications. The company was founded in 2011 and is headquartered in Shenzhen, the People's Republic of China.

About Nextdoor

(Get Free Report)

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.

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