Bandwidth (NASDAQ:BAND – Get Free Report) and BigCommerce (NASDAQ:BIGC – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.
Analyst Recommendations
This is a summary of recent ratings and target prices for Bandwidth and BigCommerce, as reported by MarketBeat.
| 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 presently has a consensus target price of $28.83, suggesting a potential upside of 83.89%. BigCommerce has a consensus target price of $8.31, suggesting a potential upside of 35.60%. Given Bandwidth’s stronger consensus rating and higher possible upside, equities analysts clearly believe Bandwidth is more favorable than BigCommerce.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bandwidth | $601.12 million | 0.72 | -$16.34 million | ($0.93) | -16.86 |
| BigCommerce | $309.39 million | 1.55 | -$64.67 million | ($0.36) | -17.03 |
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.
Risk and Volatility
Bandwidth has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, BigCommerce has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.
Insider and Institutional 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, large money managers and hedge funds believe a stock is poised for long-term growth.
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.
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