Commerce.com (NASDAQ:CMRC – Get Free Report) and Sangoma Technologies (NASDAQ:SANG – Get Free Report) are both small-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Commerce.com and Sangoma Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Commerce.com | 3 | 2 | 1 | 1 | 2.00 |
| Sangoma Technologies | 2 | 2 | 1 | 0 | 1.80 |
Commerce.com currently has a consensus target price of $4.17, indicating a potential upside of 17.04%. Sangoma Technologies has a consensus target price of $4.00, indicating a potential downside of 16.32%. Given Commerce.com’s stronger consensus rating and higher probable upside, research analysts plainly believe Commerce.com is more favorable than Sangoma Technologies.
Risk & Volatility
Commerce.com has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Sangoma Technologies has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.
Institutional & Insider Ownership
79.2% of Commerce.com shares are held by institutional investors. Comparatively, 39.6% of Sangoma Technologies shares are held by institutional investors. 2.7% of Commerce.com shares are held by company insiders. Comparatively, 14.0% of Sangoma Technologies shares are held 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 Commerce.com and Sangoma Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Commerce.com | -1.66% | 20.49% | 2.92% |
| Sangoma Technologies | -38.99% | -3.85% | -2.93% |
Earnings & Valuation
This table compares Commerce.com and Sangoma Technologies”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Commerce.com | $346.90 million | 0.85 | -$19.34 million | ($0.07) | -50.86 |
| Sangoma Technologies | $200.07 million | 0.80 | -$81.09 million | ($2.39) | -2.00 |
Commerce.com has higher revenue and earnings than Sangoma Technologies. Commerce.com is trading at a lower price-to-earnings ratio than Sangoma Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
Commerce.com beats Sangoma Technologies on 11 of the 14 factors compared between the two stocks.
About Commerce.com
BigCommerce Holdings, Inc. operates a software-as-a-service platform for small businesses, mid-markets, and large enterprises in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company’s platform provides various services for launching and scaling e-commerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integrations. As of December 31, 2021, it served approximately 60,000 online stores across industries. BigCommerce Holdings, Inc. was founded in 2009 and is headquartered in Austin, Texas.
About Sangoma Technologies
Sangoma Technologies Corporation develops, manufactures, distributes, and supports voice and data connectivity components for software-based communication applications worldwide. The company offers Switchvox, a voice over internet protocol phone system; Switchvox Cloud, a unified communications solution, as well as provides cloud communication solutions. It offers SIP Trunking, a telephone service for one or multiple locations; PBXact Cloud, a centralized internet based solution; Asterisk and FreePBX, an open source IP PBX software; and FAXStation, a fax-over-IP solution. In addition, the company provides desk phone, DECT phones, and headset related products. Further, it offers VoIP gateways, session border controllers, telephony card, and managed service provider services. Sangoma Technologies Corporation was founded in 1984 and is headquartered in Markham, Canada.
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