Head-To-Head Comparison: ON24 (NYSE:ONTF) & BigCommerce (NASDAQ:BIGC)

ON24 (NYSE:ONTF) and BigCommerce (NASDAQ:BIGC) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Insider & Institutional Ownership

83.9% of ON24 shares are owned by institutional investors. Comparatively, 79.2% of BigCommerce shares are owned by institutional investors. 32.3% of ON24 shares are owned by company insiders. Comparatively, 9.1% of BigCommerce shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares ON24 and BigCommerce”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ON24	$150.74 million	1.73	-$51.79 million	($1.04)	-6.01
BigCommerce	$330.05 million	1.51	-$64.67 million	($0.36)	-17.69

ON24 has higher earnings, but lower revenue than BigCommerce. BigCommerce is trading at a lower price-to-earnings ratio than ON24, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for ON24 and BigCommerce, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ON24	0	3	0	0	2.00
BigCommerce	1	5	2	0	2.13

ON24 presently has a consensus target price of $8.00, indicating a potential upside of 28.00%. BigCommerce has a consensus target price of $8.81, indicating a potential upside of 38.34%. Given BigCommerce’s stronger consensus rating and higher possible upside, analysts clearly believe BigCommerce is more favorable than ON24.

Risk and Volatility

ON24 has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, BigCommerce has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares ON24 and BigCommerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ON24	-28.63%	-23.10%	-15.05%
BigCommerce	-8.43%	-58.18%	-3.74%

Summary

BigCommerce beats ON24 on 8 of the 14 factors compared between the two stocks.

About ON24

ON24, Inc. provides a cloud-based intelligent engagement platform that enables businesses to convert customer engagement into revenue through interactive webinar, virtual event, and multimedia content experiences worldwide. The company provides ON24 Elite, for live and interactive webinar experience; ON24 Breakouts, for live breakout room experience that facilitates networking, collaboration, and interactivity between users; ON24 Forums, for live and interactive experience, which facilitates video-to-video interaction between presenters and audiences; ON24 Go Live, for live and interactive video event experience that enables presenters and attendees to engage face-to-face in real-time; and ON24 Virtual Confrence, for live and large scale managed virtual event experience. It also offers ON24 Engagement Hub, for always-on multimedia content experience; ON24 Target, for personalized and curated landing page experience; ON24 Intelligence, for analytics backbone that captures first-person data to power the insights, benchmarking, reporting, and artificial intelligence and machine learning engine; ON24 AI-powered ACE, for enabling hyper-personalization at scale across ON24 experiences; ON24 Connect, for ecosystem of third-party application integrations; and ON24 Services and Platform Support, which provides a portfolio of professional services that provide consulting and support for product and platform adoption. In addition, the company offers consulting services, such as experience management, monitoring and production, implementation, and other support services. It sells its products through direct sales. The company serves technology, financial services, healthcare, industrial and manufacturing, professional services, and business-to-business information service companies. The company was formerly known as NewsDirect, Inc. and changed its name to ON24, Inc. in December 1998. ON24, Inc. was incorporated in 1998 and is headquartered in San Francisco, California.

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.