SEMrush (NYSE:SEMR – Get Free Report) and Commerce.com (NASDAQ:CMRC – Get Free Report) are both small-cap services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.
Institutional and Insider Ownership
32.9% of SEMrush shares are held by institutional investors. Comparatively, 79.2% of Commerce.com shares are held by institutional investors. 55.6% of SEMrush shares are held by insiders. Comparatively, 9.1% of Commerce.com shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
SEMrush has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Commerce.com has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SEMrush | 1 | 7 | 0 | 0 | 1.88 |
| Commerce.com | 3 | 2 | 2 | 0 | 1.86 |
SEMrush currently has a consensus price target of $10.80, indicating a potential downside of 9.66%. Commerce.com has a consensus price target of $5.58, indicating a potential upside of 105.27%. Given Commerce.com’s higher probable upside, analysts plainly believe Commerce.com is more favorable than SEMrush.
Earnings & Valuation
This table compares SEMrush and Commerce.com”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SEMrush | $443.64 million | 4.07 | -$18.96 million | ($0.11) | -108.68 |
| Commerce.com | $342.35 million | 0.65 | -$19.34 million | ($0.23) | -11.83 |
SEMrush has higher revenue and earnings than Commerce.com. SEMrush is trading at a lower price-to-earnings ratio than Commerce.com, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares SEMrush and Commerce.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SEMrush | -4.27% | -3.19% | -2.12% |
| Commerce.com | -5.65% | -8.33% | -1.10% |
Summary
SEMrush beats Commerce.com on 9 of the 14 factors compared between the two stocks.
About SEMrush
Semrush Holdings, Inc. develops an online visibility management software-as-a-service platform worldwide. The company enables companies to identify and reach the right audience for their content through the right channels. Its platform enables the company’s customers to understand trends and act upon insights to enhance the online visibility, and drive traffic to their websites and social media pages, as well as online listings, distribute targeted content to their customers, and measure the digital marketing campaigns. The company was founded in 2008 and is headquartered in Boston, Massachusetts.
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.
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