Commerce.com (CMRC) vs. Its Competitors Critical Comparison

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

Institutional & Insider Ownership

79.2% of Commerce.com shares are owned by institutional investors. Comparatively, 56.8% of shares of all “Services – Computer Programming And Data Processing” companies are owned by institutional investors. 9.1% of Commerce.com shares are owned by insiders. Comparatively, 22.3% of shares of all “Services – Computer Programming And Data Processing” companies are owned 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.

Volatility and Risk

Commerce.com has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Commerce.com’s peers have a beta of 0.80, suggesting that their average stock price is 20% less volatile than the S&P 500.

Profitability

This table compares Commerce.com and its peers’ 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%

Valuation and Earnings

This table compares Commerce.com and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Commerce.com	$332.93 million	-$27.03 million	-20.44
Commerce.com Competitors	$274.79 million	-$64.10 million	-9.13

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Commerce.com and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commerce.com	3	2	2	0	1.86
Commerce.com Competitors	93	195	216	11	2.28

Commerce.com presently has a consensus target price of $7.30, indicating a potential upside of 123.24%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 73.98%. Given Commerce.com’s higher probable upside, research analysts plainly believe Commerce.com is more favorable than its peers.

Summary

Commerce.com beats its peers on 8 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.