Analyzing Kaltura (NASDAQ:KLTR) and Commerce.com (NASDAQ:CMRC)

Commerce.com (NASDAQ:CMRC – Get Free Report) and Kaltura (NASDAQ:KLTR – Get Free Report) are both small-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Insider and Institutional Ownership

79.2% of Commerce.com shares are held by institutional investors. Comparatively, 30.8% of Kaltura shares are held by institutional investors. 2.7% of Commerce.com shares are held by insiders. Comparatively, 16.3% of Kaltura shares are held by 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.

Profitability

This table compares Commerce.com and Kaltura’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Commerce.com -1.66% 20.49% 2.92%
Kaltura -6.92% -51.05% -2.33%

Valuation and Earnings

This table compares Commerce.com and Kaltura”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Commerce.com $342.35 million 0.86 -$19.34 million ($0.07) -50.86
Kaltura $180.85 million 1.21 -$12.07 million ($0.09) -16.00

Kaltura has lower revenue, but higher earnings than Commerce.com. Commerce.com is trading at a lower price-to-earnings ratio than Kaltura, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Commerce.com has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Kaltura has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Commerce.com and Kaltura, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Commerce.com 3 2 1 1 2.00
Kaltura 1 0 1 0 2.00

Commerce.com presently has a consensus target price of $4.17, indicating a potential upside of 17.04%. Kaltura has a consensus target price of $3.00, indicating a potential upside of 108.33%. Given Kaltura’s higher possible upside, analysts clearly believe Kaltura is more favorable than Commerce.com.

Summary

Commerce.com beats Kaltura on 8 of the 13 factors compared between the two stocks.

About Commerce.com

(Get Free Report)

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.

About Kaltura

(Get Free Report)

Kaltura, Inc. provides various software-as-a-service (SaaS) products and solutions and a platform-as-a-service (PaaS) in the United States, Europe, the Middle East, Africa, and internationally. The company operates through two segments, Enterprise, Education, and Technology (EE&T); and Media and Telecom (M&T). It offers video products, such as virtual and hybrid events, webinars, video portals, online learning, and content portals for training, marketing, virtual and hybrid events, communication, collaboration, sales, and customer care; and education solutions, such as learning management system video and lecture capture solutions. The company also provides online video experiences, including for over-the-top (OTT) television, cloud TV, web video publishing, video-based teaching, learning, training, video-based marketing, and video-based collaboration. In addition, it offers application programming interfaces (APIs), software development kits, and experience components, including live, real-time and on-demand video, ingestion, transcoding, enrichment, management, distribution, engagement, monetization, and deep viewer analytics, as well as video player, video editor, video capture tool, and chat and networking widgets. The company serves a range of industries, including financial services, high technology, healthcare and pharmaceuticals, education, public sector, media, telecommunications, information technology (IT) and professional services, retail, and manufacturing. Kaltura, Inc. was incorporated in 2006 and is headquartered in New York, New York.

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