Bigcommerce (NASDAQ:BIGC – Get Free Report) and Commerce.com (NASDAQ:CMRC – Get Free Report) are both small-cap services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.
Profitability
This table compares Bigcommerce and Commerce.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bigcommerce | N/A | N/A | N/A |
| Commerce.com | -4.40% | 6.10% | 0.82% |
Earnings and Valuation
This table compares Bigcommerce and Commerce.com”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bigcommerce | $334.94 million | 0.68 | -$17.62 million | ($0.22) | -12.95 |
| Commerce.com | $346.82 million | 0.68 | -$19.34 million | ($0.18) | -15.89 |
Bigcommerce has higher earnings, but lower revenue than Commerce.com. Commerce.com is trading at a lower price-to-earnings ratio than Bigcommerce, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
79.2% of Bigcommerce shares are held by institutional investors. Comparatively, 79.2% of Commerce.com shares are held by institutional investors. 5.0% of Bigcommerce shares are held by company insiders. Comparatively, 2.7% of Commerce.com shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Bigcommerce has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Commerce.com has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for Bigcommerce and Commerce.com, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bigcommerce | 0 | 0 | 1 | 0 | 3.00 |
| Commerce.com | 3 | 1 | 2 | 0 | 1.83 |
Bigcommerce presently has a consensus target price of $11.00, suggesting a potential upside of 285.96%. Commerce.com has a consensus target price of $4.70, suggesting a potential upside of 64.34%. Given Bigcommerce’s stronger consensus rating and higher probable upside, analysts clearly believe Bigcommerce is more favorable than Commerce.com.
Summary
Bigcommerce beats Commerce.com on 8 of the 13 factors compared between the two stocks.
About Bigcommerce
BigCommerce Holdings, Inc. operates a software-as-a-service platform for small businesses, mid-markets, and large enterprises in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company’s platform provides various services for launching and scaling e-commerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integrations. As of December 31, 2021, it served approximately 60,000 online stores across industries. BigCommerce Holdings, Inc. was founded in 2009 and is headquartered in Austin, Texas.
About Commerce.com
BigCommerce Holdings, Inc. operates a software-as-a-service platform for small businesses, mid-markets, and large enterprises in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company’s platform provides various services for launching and scaling e-commerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integrations. As of December 31, 2021, it served approximately 60,000 online stores across industries. BigCommerce Holdings, Inc. was founded in 2009 and is headquartered in Austin, Texas.
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