ON24 (NYSE:ONTF – Get Free Report) and BigCommerce (NASDAQ:BIGC – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.
Volatility & Risk
ON24 has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, BigCommerce has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.
Institutional and Insider Ownership
83.9% of ON24 shares are owned by institutional investors. Comparatively, 79.2% of BigCommerce shares are owned by institutional investors. 32.3% of ON24 shares are owned by insiders. Comparatively, 9.1% of BigCommerce shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ON24 | $163.71 million | 1.64 | -$51.79 million | ($1.04) | -6.18 |
| BigCommerce | $309.39 million | 1.73 | -$64.67 million | ($0.36) | -18.97 |
ON24 has higher earnings, but lower revenue than BigCommerce. BigCommerce is trading at a lower price-to-earnings ratio than ON24, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ON24 and BigCommerce’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ON24 | -28.63% | -23.10% | -15.05% |
| BigCommerce | -8.43% | -58.18% | -3.74% |
Analyst Recommendations
This is a summary of recent ratings for ON24 and BigCommerce, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ON24 | 0 | 3 | 0 | 0 | 2.00 |
| BigCommerce | 1 | 5 | 2 | 0 | 2.13 |
ON24 currently has a consensus target price of $8.00, suggesting a potential upside of 24.42%. BigCommerce has a consensus target price of $8.81, suggesting a potential upside of 29.03%. Given BigCommerce’s stronger consensus rating and higher probable upside, analysts clearly believe BigCommerce is more favorable than ON24.
Summary
BigCommerce beats ON24 on 9 of the 14 factors compared between the two stocks.
About ON24
ON24, Inc. provides a cloud-based intelligent engagement platform that enables businesses to convert customer engagement into revenue through interactive webinar, virtual event, and multimedia content experiences worldwide. The company provides ON24 Elite, for live and interactive webinar experience; ON24 Breakouts, for live breakout room experience that facilitates networking, collaboration, and interactivity between users; ON24 Forums, for live and interactive experience, which facilitates video-to-video interaction between presenters and audiences; ON24 Go Live, for live and interactive video event experience that enables presenters and attendees to engage face-to-face in real-time; and ON24 Virtual Confrence, for live and large scale managed virtual event experience. It also offers ON24 Engagement Hub, for always-on multimedia content experience; ON24 Target, for personalized and curated landing page experience; ON24 Intelligence, for analytics backbone that captures first-person data to power the insights, benchmarking, reporting, and artificial intelligence and machine learning engine; ON24 AI-powered ACE, for enabling hyper-personalization at scale across ON24 experiences; ON24 Connect, for ecosystem of third-party application integrations; and ON24 Services and Platform Support, which provides a portfolio of professional services that provide consulting and support for product and platform adoption. In addition, the company offers consulting services, such as experience management, monitoring and production, implementation, and other support services. It sells its products through direct sales. The company serves technology, financial services, healthcare, industrial and manufacturing, professional services, and business-to-business information service companies. The company was formerly known as NewsDirect, Inc. and changed its name to ON24, Inc. in December 1998. ON24, Inc. was incorporated in 1998 and is headquartered in San Francisco, California.
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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