Nextdoor (NYSE:KIND – Get Free Report) and Karooooo (NASDAQ:KARO – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.
Profitability
This table compares Nextdoor and Karooooo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nextdoor | -36.95% | -15.75% | -13.84% |
| Karooooo | 18.07% | 31.26% | 19.23% |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Nextdoor and Karooooo, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nextdoor | 0 | 1 | 0 | 0 | 2.00 |
| Karooooo | 0 | 1 | 6 | 0 | 2.86 |
Earnings and Valuation
This table compares Nextdoor and Karooooo”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nextdoor | $248.31 million | 3.25 | -$98.06 million | ($0.24) | -8.79 |
| Karooooo | $314.11 million | 4.95 | $56.95 million | $1.85 | 27.23 |
Karooooo has higher revenue and earnings than Nextdoor. Nextdoor is trading at a lower price-to-earnings ratio than Karooooo, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
35.7% of Nextdoor shares are owned by institutional investors. 33.4% of Nextdoor shares are owned by company insiders. Comparatively, 74.7% of Karooooo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
Nextdoor has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Karooooo has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.
Summary
Karooooo beats Nextdoor on 12 of the 14 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 Karooooo
Karooooo Ltd. provides mobility software-as-a-service (SaaS) platform for connected vehicles in South Africa, rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. The company offers Fleet Telematics, a fleet management SaaS platform that provides real-time insights; LiveVision, which offers pro-active risk management and fleet visibility; MiFleet advanced fleet administration and business intelligence that provides cost management and administration capability services; and Karooooo Logistics, a software application for management of last mile delivery and general operational logistics. It provides Cartrack Field Service, a software application for management of field and on site workers; Business Intelligence for high-level view of fleet statistics; asset tracking for tracking and tracing moveable assets; asset recovery services that assists vehicle owners and insurance companies with the recovery of vehicles and other assets; and insurance telematics that allows insurers to tailor premiums for commercial and consumer customers using analytics; Protector, a safety package for consumer vehicles; and Car Watch, a mobile application that lets users track and watch their vehicles. In addition, the company offers specialist mobility solutions that include Bike Track, a GPS-based solution for commercial motorbike fleets; Credit Management that predicts payment cycles and facilitate active credit management for asset-based vehicle finance; electronic monitoring services application that allows law enforcement agencies to monitor persons of interest; and mobility and monitoring solutions, such as Carzuka, cartrack insurance agency, and on-demand rideshare taxi application, as well as smart IoT products. It provides its solutions through direct sales force to consumers and sole proprietors, small and medium-sized businesses, large enterprises, and other connected devices. Karooooo Ltd. was founded in 2001 and is headquartered in Singapore.
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