Critical Review: BigCommerce (BIGC) versus Its Peers

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

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 company insiders. Comparatively, 17.8% of shares of all “Prepackaged software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares BigCommerce and its rivals’ 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%

Analyst Ratings

This is a summary of recent ratings and recommmendations for BigCommerce and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BigCommerce 2 11 5 0 2.17
BigCommerce Competitors 2160 11321 21162 607 2.57

BigCommerce presently has a consensus target price of $66.00, indicating a potential upside of 10.63%. As a group, “Prepackaged software” companies have a potential upside of 13.34%. Given BigCommerce’s rivals stronger consensus rating and higher possible upside, analysts clearly believe BigCommerce has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares BigCommerce and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
BigCommerce $152.37 million -$37.56 million -55.76
BigCommerce Competitors $1.90 billion $320.23 million 52.79

BigCommerce’s rivals have higher revenue and earnings than BigCommerce. BigCommerce is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

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

BigCommerce Company Profile

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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