Contrasting Radware (NASDAQ:RDWR) & Nextdoor (NYSE:KIND)

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Radware and Nextdoor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Radware	1	2	2	0	2.20
Nextdoor	1	1	0	0	1.50

Radware presently has a consensus target price of $30.00, indicating a potential upside of 9.17%. Nextdoor has a consensus target price of $1.55, indicating a potential downside of 23.27%. Given Radware’s stronger consensus rating and higher possible upside, equities analysts clearly believe Radware is more favorable than Nextdoor.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Radware	6.28%	7.60%	4.43%
Nextdoor	-36.95%	-15.75%	-13.84%

Volatility & Risk

Radware has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Nextdoor has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Institutional and Insider Ownership

73.1% of Radware shares are owned by institutional investors. Comparatively, 35.7% of Nextdoor shares are owned by institutional investors. 21.6% of Radware shares are owned by insiders. Comparatively, 33.4% of Nextdoor shares are owned 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.

Earnings and Valuation

This table compares Radware and Nextdoor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Radware	$301.85 million	3.83	$20.26 million	$0.45	61.07
Nextdoor	$248.31 million	3.11	-$98.06 million	($0.24)	-8.42

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

Summary

Radware beats Nextdoor on 12 of the 14 factors compared between the two stocks.

About Radware

Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for cloud, on-premises, and software defined data centers worldwide. The company operates in two segments, Radware’s Core Business and The Hawks’ Business. It offers DefensePro provides automated DDoS protection; Radware Kubernetes, a web application firewall solution; and Cyber Controller, a unified solution for management, configuration, and attack lifecycle. The company also provides Alteon, an application delivery and security solution that manages application traffic across cloud and data center locations for optimizing availability and performance; and LinkProof NG, a multi-homing and enterprise gateway solution. In addition, it offers ERT Security Updates Subscription that provides protection from network elements, hosts, and applications; ERT Active Attackers Feed, a threat intelligence feed to protect against DDoS threats; ERT Protection Packages; Alteon Global Elastic License, a purchasing and deployment subscription; MSSP Portal, a DDoS detection and mitigation service portal; Location-based Mitigation that enables network traffic based on the geolocation mapping of IP subnets; and Cloud DDoS Protection Service, which offers a range of enterprise-grade DDoS protection services in the cloud. Further, the company provides Cloud Web DDoS Protection, Cloud WAF Service, Bot Manager, Cloud-Native Protector, and Cloud Application Protection Services, as well as technical support, professional, managed, and training and certification services. It sells its products primarily to independent distributors, including value added resellers, original equipment manufacturers, and system integrators. The company was founded in 1996 and is headquartered in Tel Aviv, Israel.

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.