Critical Review: Commerce.com (CMRC) & Its Peers

Commerce.com (NASDAQ:CMRC) is one of 43 public companies in the “Services – Computer Programming And Data Processing” industry, but how does it compare to its rivals? We will compare Commerce.com to similar businesses based on the strength of its earnings, dividends, profitability, valuation, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Commerce.com and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Commerce.com	-3.93%	-6.66%	-0.82%
Commerce.com Competitors	-53.73%	-1,002.64%	-68.20%

Volatility & Risk

Commerce.com has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Commerce.com’s rivals have a beta of 0.77, indicating that their average stock price is 23% less volatile than the S&P 500.

Insider & Institutional Ownership

79.2% of Commerce.com shares are held by institutional investors. Comparatively, 58.9% of shares of all “Services – Computer Programming And Data Processing” companies are held by institutional investors. 9.1% of Commerce.com shares are held by insiders. Comparatively, 21.2% of shares of all “Services – Computer Programming And Data Processing” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Commerce.com and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Commerce.com	$332.93 million	-$27.03 million	-25.38
Commerce.com Competitors	$257.93 million	-$40.93 million	-8.12

Commerce.com has higher revenue and earnings than its rivals. Commerce.com is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations for Commerce.com and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commerce.com	2	2	2	0	2.00
Commerce.com Competitors	84	184	204	9	2.29

Commerce.com presently has a consensus price target of $8.30, suggesting a potential upside of 104.43%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 78.83%. Given Commerce.com’s higher possible upside, equities research analysts clearly believe Commerce.com is more favorable than its rivals.

Summary

Commerce.com beats its rivals on 8 of the 13 factors compared.

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.