BigCommerce (NASDAQ:BIGC) & Bandwidth (NASDAQ:BAND) Head to Head Contrast

BigCommerce (NASDAQ:BIGC) and Bandwidth (NASDAQ:BAND) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.

Volatility & Risk

BigCommerce has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Bandwidth has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Profitability

This table compares BigCommerce and Bandwidth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BigCommerce	-8.43%	-58.18%	-3.74%
Bandwidth	-2.23%	-0.89%	-0.26%

Earnings and Valuation

This table compares BigCommerce and Bandwidth”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BigCommerce	$309.39 million	1.55	-$64.67 million	($0.36)	-17.03
Bandwidth	$601.12 million	0.72	-$16.34 million	($0.93)	-16.86

Bandwidth has higher revenue and earnings than BigCommerce. BigCommerce is trading at a lower price-to-earnings ratio than Bandwidth, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for BigCommerce and Bandwidth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BigCommerce	2	4	2	0	2.00
Bandwidth	1	2	4	0	2.43

BigCommerce currently has a consensus target price of $8.31, suggesting a potential upside of 35.60%. Bandwidth has a consensus target price of $28.83, suggesting a potential upside of 83.89%. Given Bandwidth’s stronger consensus rating and higher possible upside, analysts plainly believe Bandwidth is more favorable than BigCommerce.

Insider & Institutional Ownership

79.2% of BigCommerce shares are owned by institutional investors. Comparatively, 68.5% of Bandwidth shares are owned by institutional investors. 9.1% of BigCommerce shares are owned by insiders. Comparatively, 6.2% of Bandwidth shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Bandwidth beats BigCommerce on 10 of the 14 factors compared between the two stocks.

About BigCommerce

BigCommerce Holdings, Inc. operates a software-as-a-service platform for enterprises, small businesses, and mid-markets in the United States, North and South America, Europe, the Middle East, Africa, and the AsiaPacific. The company provides a platform for launching and scaling an ecommerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integration into third-party services. It serves stores in various sizes, product categories, and purchase types, such as business-to-business and business-to-consumer. The company was founded in 2009 and is headquartered in Austin, Texas.

About Bandwidth

Bandwidth is a leading enterprise cloud communications company. Companies like Cisco, Google, Microsoft, RingCentral, Uber, and Zoom use Bandwidth’s APIs to easily embed voice, messaging, and emergency services into software and applications. Bandwidth is the first and only CPaaS provider offering a robust selection of communications APIs built around their own IP voice network.