BigCommerce (BIGC) and Its Peers Critical Review

BigCommerce (NASDAQ: BIGC) is one of 318 public companies in the “Prepackaged software” industry, but how does it contrast to its peers? We will compare BigCommerce to related companies based on the strength of its risk, earnings, institutional ownership, dividends, valuation, analyst recommendations and profitability.

Earnings and Valuation

This table compares BigCommerce and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
BigCommerce $152.37 million -$37.56 million -55.62
BigCommerce Competitors $1.90 billion $320.23 million 53.31

BigCommerce’s peers have higher revenue and earnings than BigCommerce. BigCommerce 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 Ratings

This is a breakdown of recent ratings and recommmendations for BigCommerce and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BigCommerce 2 11 5 0 2.17
BigCommerce Competitors 2160 11327 21168 607 2.57

BigCommerce currently has a consensus target price of $66.00, suggesting a potential upside of 10.63%. As a group, “Prepackaged software” companies have a potential upside of 13.32%. Given BigCommerce’s peers stronger consensus rating and higher possible upside, analysts clearly believe BigCommerce has less favorable growth aspects than its peers.

Insider & Institutional Ownership

64.5% of BigCommerce shares are owned by institutional investors. Comparatively, 59.7% of shares of all “Prepackaged software” companies are owned by institutional investors. 31.7% of BigCommerce shares are owned by insiders. Comparatively, 17.8% of shares of all “Prepackaged software” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares BigCommerce and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BigCommerce -25.37% -52.31% -19.46%
BigCommerce Competitors -39.81% -62.75% -3.61%

Summary

BigCommerce peers beat BigCommerce on 8 of the 12 factors compared.

About BigCommerce

BigCommerce Holdings, Inc. operates a software-as-a-service platform for small businesses, mid-markets, and large enterprises in the United States. The company's platform provides various services for launching and scaling ecommerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integrations. As of December 31, 2020, it served approximately 60,000 online stores across industries in approximately 155 countries. BigCommerce Holdings, Inc. was founded in 2009 and is headquartered in Austin, Texas.

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