Commerce.com (NASDAQ:CMRC – Get Free Report) and Mega Fortune (NASDAQ:MGRT – Get Free Report) are both small-cap services companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
79.2% of Commerce.com shares are owned by institutional investors. 9.1% of Commerce.com shares are owned by company 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.
Earnings and Valuation
This table compares Commerce.com and Mega Fortune”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Commerce.com | $342.35 million | 0.65 | -$19.34 million | ($0.23) | -11.83 |
| Mega Fortune | N/A | N/A | N/A | N/A | N/A |
Mega Fortune has lower revenue, but higher earnings than Commerce.com.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Commerce.com and Mega Fortune, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Commerce.com | 3 | 2 | 2 | 0 | 1.86 |
| Mega Fortune | 1 | 0 | 0 | 0 | 1.00 |
Commerce.com presently has a consensus price target of $5.58, suggesting a potential upside of 105.27%. Given Commerce.com’s stronger consensus rating and higher probable upside, equities analysts clearly believe Commerce.com is more favorable than Mega Fortune.
Profitability
This table compares Commerce.com and Mega Fortune’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Commerce.com | -5.65% | -8.30% | -1.11% |
| Mega Fortune | N/A | N/A | N/A |
Summary
Commerce.com beats Mega Fortune on 6 of the 9 factors compared between the two stocks.
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.
About Mega Fortune
We are a holding company incorporated as an exempted company with limited liability in the Cayman Islands. Our ordinary shares offered in this prospectus are shares of our Cayman Islands holding company. As a holding company with no material operations of our own, we conduct our business through our operating subsidiary in Hong Kong. We own 100% equity interest of all our subsidiaries and do not have a variable interest entity, or VIE, structure. We are an Internet of Things (“IoT”) solution provider in Hong Kong. Through our operating subsidiary QBS System Limited (“QBS System”), founded in 2011, we have specialized in delivering comprehensive IoT solutions and services across various industries. Our vision is to become the preferred choice for IoT solutions for enterprises and projects in the Asia-Pacific region. We plan to achieve this through helping enterprises undergo digital transformation, launch IoT initiatives, upscale existing IoT applications, or IoT solutions with legacy systems. QBS System’s business service portfolio includes the provision of IoT Integration Solution Services, IoT Maintenance and Support services, BPO services and trading sales. Our principal executive offices are located in New Territories, Hong Kong.
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