Head to Head Survey: Commerce.com (NASDAQ:CMRC) vs. Bigcommerce (NASDAQ:BIGC)

Bigcommerce (NASDAQ:BIGC) and Commerce.com (NASDAQ:CMRC) are both small-cap services companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Bigcommerce and Commerce.com, as reported 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 currently has a consensus target price of $11.00, indicating a potential upside of 297.11%. Commerce.com has a consensus target price of $4.70, indicating a potential upside of 71.53%. Given Bigcommerce’s stronger consensus rating and higher probable upside, analysts clearly believe Bigcommerce is more favorable than Commerce.com.

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%

Volatility & Risk

Bigcommerce has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Commerce.com has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Insider and Institutional Ownership

79.2% of Bigcommerce shares are owned by institutional investors. Comparatively, 79.2% of Commerce.com shares are owned by institutional investors. 5.0% of Bigcommerce shares are owned by company insiders. Comparatively, 2.7% of Commerce.com shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Bigcommerce and Commerce.com”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bigcommerce	$334.94 million	0.66	-$17.62 million	($0.22)	-12.59
Commerce.com	$342.35 million	0.66	-$19.34 million	($0.18)	-15.22

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.

Summary

Bigcommerce beats Commerce.com on 8 of the 14 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.