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

Commerce.com (NASDAQ:CMRC) is one of 44 publicly-traded companies in the “Services – Computer Programming And Data Processing” industry, but how does it compare to its competitors? We will compare Commerce.com to similar businesses based on the strength of its dividends, profitability, analyst recommendations, risk, institutional ownership, valuation and earnings.

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	-51.08%	-912.69%	-63.05%

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Commerce.com	$332.93 million	-$27.03 million	-23.31
Commerce.com Competitors	$280.97 million	-$64.10 million	-9.52

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.

Analyst Ratings

This is a breakdown of recent 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	88	194	212	11	2.29

Commerce.com presently has a consensus target price of $7.90, suggesting a potential upside of 111.80%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 99.53%. Given Commerce.com’s higher probable upside, research analysts plainly believe Commerce.com is more favorable than its competitors.

Volatility and Risk

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 0.80, meaning that their average stock price is 20% less volatile than the S&P 500.

Institutional and Insider Ownership

79.2% of Commerce.com shares are held by institutional investors. Comparatively, 56.8% 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, 22.3% of shares of all “Services – Computer Programming And Data Processing” companies are held by 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.

Summary

Commerce.com beats its competitors on 9 of the 13 factors compared.

Commerce.com Company Profile

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.