Analyzing BigCommerce (NASDAQ:BIGC) and Adobe (NASDAQ:ADBE)

BigCommerce (NASDAQ:BIGCGet Rating) and Adobe (NASDAQ:ADBEGet Rating) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Valuation and Earnings

This table compares BigCommerce and Adobe’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BigCommerce $219.85 million 5.89 -$76.68 million ($1.07) -16.70
Adobe $15.79 billion 11.85 $4.82 billion $10.07 39.32

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

Analyst Ratings

This is a summary of current ratings and target prices for BigCommerce and Adobe, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BigCommerce 0 7 10 0 2.59
Adobe 0 5 20 0 2.80

BigCommerce currently has a consensus price target of $35.33, indicating a potential upside of 97.72%. Adobe has a consensus price target of $588.30, indicating a potential upside of 48.58%. Given BigCommerce’s higher possible upside, research analysts plainly believe BigCommerce is more favorable than Adobe.

Volatility and Risk

BigCommerce has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Adobe has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Profitability

This table compares BigCommerce and Adobe’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BigCommerce -34.88% -27.52% -12.10%
Adobe 29.90% 36.47% 19.75%

Insider and Institutional Ownership

79.3% of BigCommerce shares are owned by institutional investors. Comparatively, 82.7% of Adobe shares are owned by institutional investors. 31.7% of BigCommerce shares are owned by company insiders. Comparatively, 0.2% of Adobe shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Adobe beats BigCommerce on 12 of the 14 factors compared between the two stocks.

BigCommerce Company Profile (Get Rating)

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.

Adobe Company Profile (Get Rating)

Adobe Inc. operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform. Its flagship product is Creative Cloud, a subscription service that allows members to access its creative products. This segment serves content creators, workers, marketers, educators, enthusiasts, communicators, and consumers. The Digital Experience segment provides an integrated platform and set of applications and services that enable brands and businesses to create, manage, execute, measure, monetize, and optimize customer experiences from analytics to commerce. This segment serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, and executives across the C-suite. The Publishing and Advertising segment offers products and services, such as e-learning solutions, technical document publishing, web conferencing, document and forms platform, web application development, and high-end printing, as well as Advertising Cloud offerings. The company offers its products and services directly to enterprise customers through its sales force and local field offices, as well as to end users through app stores and through its website at adobe.com. It also distributes products and services through a network of distributors, value-added resellers, systems integrators, software vendors and developers, retailers, and original equipment manufacturers. The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018. Adobe Inc. was founded in 1982 and is headquartered in San Jose, California.

Receive News & Ratings for BigCommerce Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BigCommerce and related companies with MarketBeat.com's FREE daily email newsletter.