Bandwidth (NASDAQ:BAND) versus BigCommerce (NASDAQ:BIGC) Financial Survey

Bandwidth (NASDAQ:BAND) 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 risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bandwidth	$703.90 million	0.61	-$16.34 million	($0.93)	-16.74
BigCommerce	$330.05 million	1.44	-$64.67 million	($0.36)	-16.89

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 Recommendations

This is a summary of recent recommendations for Bandwidth and BigCommerce, as reported by MarketBeat.com.

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

Bandwidth currently has a consensus price target of $28.83, indicating a potential upside of 85.19%. BigCommerce has a consensus price target of $8.31, indicating a potential upside of 36.72%. Given Bandwidth’s stronger consensus rating and higher possible upside, research analysts plainly believe Bandwidth is more favorable than BigCommerce.

Volatility and Risk

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

Institutional and Insider Ownership

68.5% of Bandwidth shares are owned by institutional investors. Comparatively, 79.2% of BigCommerce shares are owned by institutional investors. 6.2% of Bandwidth shares are owned by company insiders. Comparatively, 9.1% of BigCommerce shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

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

Summary

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

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.

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.