Comparing Commerce.com (NASDAQ:CMRC) and Textmunication Holdgings (OTCMKTS:TXHD)

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

Profitability

This table compares Commerce.com and Textmunication Holdgings’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Commerce.com	-5.37%	-25.13%	-2.77%
Textmunication Holdgings	-267.80%	-9,868.09%	-591.58%

Institutional and Insider Ownership

79.2% of Commerce.com shares are owned by institutional investors. 9.1% of Commerce.com shares are owned by company insiders. Comparatively, 50.0% of Textmunication Holdgings shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Commerce.com and Textmunication Holdgings”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commerce.com	$332.93 million	1.12	-$27.03 million	($0.22)	-21.05
Textmunication Holdgings	$1.07 million	0.05	-$340,000.00	N/A	N/A

Textmunication Holdgings has lower revenue, but higher earnings than Commerce.com.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commerce.com	1	2	3	0	2.33
Textmunication Holdgings	0	0	0	0	0.00

Commerce.com currently has a consensus target price of $8.42, indicating a potential upside of 81.79%. Given Commerce.com’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Commerce.com is more favorable than Textmunication Holdgings.

Risk and Volatility

Commerce.com has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Textmunication Holdgings has a beta of -2.47, suggesting that its stock price is 347% less volatile than the S&P 500.

Summary

Commerce.com beats Textmunication Holdgings on 10 of the 12 factors compared between the two stocks.

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.

About Textmunication Holdgings

Textmunication Holdings, Inc. provides mobile marketing solutions, rewards, and loyalty services in the United States, Canada, and Mexico. The company operates an online mobile marketing platform that provides mobile coupons, mobile voting/polls, multimedia messaging, text messaging, Web widgets/online forms, and loyalty and rewards programs; and SMS reminders related to various appointments, anniversaries, b-days, oil changes, tune ups, and other events, as well as offers APIs that integrates with various systems or applications. It serves quick service restaurants; gyms, and health and fitness facilities; casinos, golf courses, bowling centers, and comedy clubs; retail stores; real estate and insurance sectors; digital marketing agencies; and investor relation firms, as well as bars, salons, and medical professionals. The company is based in Pleasant Hill, California.