Reviewing Commerce.com (CMRC) and 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 contrast to its competitors? We will compare Commerce.com to related companies based on the strength of its valuation, risk, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Risk & Volatility

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

Profitability

This table compares Commerce.com and its competitors’ 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%

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Commerce.com	$332.93 million	-$27.03 million	-25.81
Commerce.com Competitors	$276.62 million	-$61.83 million	-7.31

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

Institutional & Insider Ownership

79.2% of Commerce.com shares are held by institutional investors. Comparatively, 57.1% 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 company insiders. Comparatively, 16.2% of shares of all “Services – Computer Programming And Data Processing” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Commerce.com and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commerce.com	2	2	2	1	2.29
Commerce.com Competitors	87	190	210	11	2.29

Commerce.com presently has a consensus price target of $7.90, indicating a potential upside of 91.28%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 74.05%. Given Commerce.com’s higher probable upside, equities research analysts clearly believe Commerce.com is more favorable than its competitors.

Summary

Commerce.com beats its competitors on 9 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.