Contrasting Lightspeed Commerce (NYSE:LSPD) & BILL (NYSE:BILL)

BILL (NYSE:BILL) and Lightspeed Commerce (NYSE:LSPD) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares BILL and Lightspeed Commerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BILL	0.01%	2.40%	0.91%
Lightspeed Commerce	-11.77%	0.32%	0.29%

Valuation and Earnings

This table compares BILL and Lightspeed Commerce”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BILL	$1.46 billion	2.30	$23.80 million	($0.01)	-3,375.10
Lightspeed Commerce	$1.23 billion	1.10	-$144.41 million	($1.03)	-9.49

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

Volatility and Risk

BILL has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Lightspeed Commerce has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500.

Insider and Institutional Ownership

98.0% of BILL shares are owned by institutional investors. Comparatively, 68.7% of Lightspeed Commerce shares are owned by institutional investors. 13.2% of BILL shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for BILL and Lightspeed Commerce, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BILL	1	10	12	1	2.54
Lightspeed Commerce	2	9	4	0	2.13

BILL currently has a consensus price target of $55.19, suggesting a potential upside of 63.52%. Lightspeed Commerce has a consensus price target of $11.27, suggesting a potential upside of 15.29%. Given BILL’s stronger consensus rating and higher probable upside, equities analysts plainly believe BILL is more favorable than Lightspeed Commerce.

Summary

BILL beats Lightspeed Commerce on 13 of the 15 factors compared between the two stocks.

About BILL

BILL Holdings, Inc. provides financial automation software for small and midsize businesses worldwide. The company provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve office efficiency. It also offers onboarding implementation support, and ongoing support and training services. In addition, the company's artificial intelligence enabled software provides connections between suppliers and clients. It serves accounting firms, financial institutions, and software companies. The company was formerly known as Bill.com Holdings, Inc. and changed its name to BILL Holdings, Inc. in February 2023. BILL Holdings, Inc. was incorporated in 2006 and is headquartered in San Jose, California.

About Lightspeed Commerce

Lightspeed Commerce Inc. engages in sale of cloud-based software subscriptions and payments solutions for small and midsize businesses, retailers, restaurants, and golf course operators in North America, Europe, the United Kingdom, Australia, New Zealand, and internationally. Its Software as a Service platform enables customers to engage with consumers, manage operations, accept payments, etc. The company's cloud platforms are designed interrelated elements, such as omni-channel consumer experience, a comprehensive back-office operations management suite to improve customers' efficiency and insight, and the facilitation of payments. Its platform functionalities include full omni-channel capabilities, point of sale (POS), product and menu management, employee and inventory management, analytics and reporting, multi-location connectivity, order-ahead and curbside pickup functionality, loyalty, and customer management solutions. The company also offers tailored financial solutions, such as Lightspeed Retail, Lightspeed eCommerce, Lightspeed Restaurant, and Lightspeed B2B solutions. In addition, it sells hardware, including tablets, customer facing displays, receipt printers, networking hardware, cash drawers, payment terminals, servers, stands, bar-code scanners, and an assortment of accessories, as well as provides installation and implementation services. The company was formerly known as Lightspeed POS Inc. and changed its name to Lightspeed Commerce Inc. in August 2021. Lightspeed Commerce Inc. was incorporated in 2005 and is headquartered in Montreal, Canada.