BlackLine (NASDAQ:BL – Get Free Report) and Commerce.com (NASDAQ:CMRC – Get Free Report) are both small-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.
Institutional and Insider Ownership
95.1% of BlackLine shares are held by institutional investors. Comparatively, 79.2% of Commerce.com shares are held by institutional investors. 9.1% of BlackLine shares are held by insiders. Comparatively, 2.7% of Commerce.com shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares BlackLine and Commerce.com”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BlackLine | $700.43 million | 2.34 | $24.17 million | $0.57 | 49.38 |
| Commerce.com | $342.35 million | 0.79 | -$19.34 million | ($0.07) | -46.79 |
BlackLine has higher revenue and earnings than Commerce.com. Commerce.com is trading at a lower price-to-earnings ratio than BlackLine, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares BlackLine and Commerce.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BlackLine | 4.75% | 20.89% | 4.19% |
| Commerce.com | -1.66% | 20.49% | 2.92% |
Analyst Ratings
This is a summary of current ratings and target prices for BlackLine and Commerce.com, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BlackLine | 2 | 8 | 5 | 0 | 2.20 |
| Commerce.com | 3 | 3 | 1 | 0 | 1.71 |
BlackLine presently has a consensus price target of $40.08, indicating a potential upside of 42.40%. Commerce.com has a consensus price target of $4.17, indicating a potential upside of 27.23%. Given BlackLine’s stronger consensus rating and higher probable upside, equities analysts clearly believe BlackLine is more favorable than Commerce.com.
Volatility & Risk
BlackLine has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Commerce.com has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.
Summary
BlackLine beats Commerce.com on 13 of the 14 factors compared between the two stocks.
About BlackLine
BlackLine, Inc. operates a cloud-based software platform which is designed to transform accounting and finance operations for organizations of all types and sizes. Its scalable platform supports critical accounting processes such as the financial close, account reconciliations, intercompany accounting, and controls assurance. The company was founded by Therese Tucker in May 2001 and is headquartered in Woodland Hills, CA.
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.
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