BigCommerce (NASDAQ:BIGC – Get Free Report) and Progress Software (NASDAQ:PRGS – Get Free Report) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.
Volatility & Risk
BigCommerce has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Progress Software has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.
Valuation & Earnings
This table compares BigCommerce and Progress Software”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BigCommerce | $324.38 million | 1.48 | -$64.67 million | ($0.64) | -9.73 |
| Progress Software | $694.44 million | 3.55 | $70.20 million | $1.64 | 35.16 |
Insider and Institutional Ownership
79.2% of BigCommerce shares are held by institutional investors. 9.1% of BigCommerce shares are held by insiders. Comparatively, 3.4% of Progress Software shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares BigCommerce and Progress Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BigCommerce | -12.68% | -82.39% | -4.57% |
| Progress Software | 10.29% | 36.88% | 10.30% |
Analyst Ratings
This is a breakdown of current recommendations for BigCommerce and Progress Software, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BigCommerce | 1 | 6 | 1 | 0 | 2.00 |
| Progress Software | 0 | 1 | 5 | 0 | 2.83 |
BigCommerce currently has a consensus target price of $9.31, indicating a potential upside of 49.48%. Progress Software has a consensus target price of $63.50, indicating a potential upside of 10.11%. Given BigCommerce’s higher probable upside, research analysts plainly believe BigCommerce is more favorable than Progress Software.
Summary
Progress Software 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 Progress Software
Progress Software Corporation develops, deploys, and manages business applications in the United States and internationally. The company offers OpenEdge, an application development platform for running business-critical applications; Chef, a DevOps/DevSecOps automation software; Developer Tools that consists of software development tooling collection, including .NET and JavaScript UI components for web, desktop and mobile applications, reporting and report management tools, and automated testing and mocking tools; Kemp LoadMaster, an application delivery and security product offering cloud-native, and virtual and hardware load balancers; and Sitefinity, a digital experience platform foundation delivering intelligent and ROI-driving tools for marketers. It also provides MOVEit, a managed file transfer software for managing and controlling the movement of sensitive files and securing them both at-rest and in-transit; DataDirect, a secure data connectivity tools for Relational, NoSQL, Big Data and SaaS data sources; WhatsUp Gold, a network infrastructure monitoring software providing complete visibility of all network devices, servers, virtual machines, and cloud and wireless environments to find and fix network problems; Flowmon, a network security and visibility product with automated response across hybrid cloud ecosystems; Corticon, a decision automation platform to transform user experiences by streamlining and automating complex business rules; MarkLogic, a data agility platform to connect data and metadata; and Semaphore, a Semantic AI platform. The company offers project management, implementation, custom software development, programming, and other services, as well as web-enable applications; and training services. It sells its products to end users, independent software vendors, original equipment manufacturers, system integrators, value added resellers, and distributors. The company was founded in 1981 and is headquartered in Burlington, Massachusetts.
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