VNET Group (NASDAQ:VNET) and BigCommerce (NASDAQ:BIGC) Head to Head Review

VNET Group (NASDAQ:VNET) and BigCommerce (NASDAQ:BIGC) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Earnings & Valuation

This table compares VNET Group and BigCommerce”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VNET Group	$8.61 billion	0.22	$25.10 million	($0.01)	-697.00
BigCommerce	$332.93 million	1.22	-$27.03 million	($0.27)	-18.81

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

Insider and Institutional Ownership

72.8% of VNET Group shares are held by institutional investors. Comparatively, 79.2% of BigCommerce shares are held by institutional investors. 12.1% of VNET Group shares are held by company insiders. Comparatively, 5.0% of BigCommerce shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VNET Group	1.66%	2.11%	0.44%
BigCommerce	-6.27%	-33.21%	-2.97%

Analyst Ratings

This is a summary of current ratings and price targets for VNET Group and BigCommerce, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VNET Group	0	0	4	2	3.33
BigCommerce	2	2	2	0	2.00

VNET Group presently has a consensus price target of $9.30, indicating a potential upside of 33.43%. BigCommerce has a consensus price target of $7.58, indicating a potential upside of 49.28%. Given BigCommerce’s higher probable upside, analysts plainly believe BigCommerce is more favorable than VNET Group.

Risk & Volatility

VNET Group has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, BigCommerce has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Summary

VNET Group beats BigCommerce on 10 of the 15 factors compared between the two stocks.

About VNET Group

VNET Group, Inc., an investment holding company, provides hosting and related services in China. It offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house customers' servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; interconnectivity services that allow customers to connect their servers; value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services; cloud services that allow customers to run applications over the internet using IT infrastructure; and VPN Services that extend customers' private networks by setting up connections through the public internet. The company also provides server administration services, such as operating system support and assistance with updates, server monitoring, server backup and restoration, server security evaluation, firewall services, and disaster recovery services. It serves information technology and cloud services, communications and social networking, gaming and entertainment, e-commerce, automobile, financial services, and blue-chip and small-to-mid-sized enterprises; government agencies; individuals; and telecommunication carriers. The company was formerly known as 21Vianet Group, Inc. and changed its name to VNET Group, Inc. in October 2021. VNET Group, Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

About BigCommerce

BigCommerce Holdings, Inc. operates a software-as-a-service platform for enterprises, small businesses, and mid-markets in the United States, North and South America, Europe, the Middle East, Africa, and the AsiaPacific. The company provides a platform for launching and scaling an ecommerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integration into third-party services. It serves stores in various sizes, product categories, and purchase types, such as business-to-business and business-to-consumer. The company was founded in 2009 and is headquartered in Austin, Texas.