Textmunication Holdgings (OTCMKTS:TXHD) versus Commerce.com (NASDAQ:CMRC) Financial Review

Textmunication Holdgings (OTCMKTS:TXHD) and Commerce.com (NASDAQ:CMRC) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Institutional and Insider Ownership

79.2% of Commerce.com shares are held by institutional investors. 50.0% of Textmunication Holdgings shares are held by company insiders. Comparatively, 9.1% of Commerce.com shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Textmunication Holdgings and Commerce.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Textmunication Holdgings	-267.80%	-9,868.09%	-591.58%
Commerce.com	-5.37%	-25.13%	-2.77%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Textmunication Holdgings and Commerce.com, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Textmunication Holdgings	0	0	0	0	0.00
Commerce.com	1	2	3	0	2.33

Commerce.com has a consensus target price of $8.42, suggesting a potential upside of 78.70%. Given Commerce.com’s stronger consensus rating and higher possible upside, analysts plainly believe Commerce.com is more favorable than Textmunication Holdgings.

Valuation & Earnings

This table compares Textmunication Holdgings and Commerce.com”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Textmunication Holdgings	$1.07 million	0.08	-$340,000.00	N/A	N/A
Commerce.com	$337.54 million	1.13	-$27.03 million	($0.22)	-21.41

Textmunication Holdgings has higher earnings, but lower revenue than Commerce.com.

Volatility and Risk

Textmunication Holdgings has a beta of -2.47, suggesting that its share price is 347% less volatile than the S&P 500. Comparatively, Commerce.com has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Summary

Commerce.com beats Textmunication Holdgings on 10 of the 12 factors compared between the two stocks.

About Textmunication Holdgings

Textmunication Holdings, Inc. provides mobile marketing solutions, rewards, and loyalty services in the United States, Canada, and Mexico. The company operates an online mobile marketing platform that provides mobile coupons, mobile voting/polls, multimedia messaging, text messaging, Web widgets/online forms, and loyalty and rewards programs; and SMS reminders related to various appointments, anniversaries, b-days, oil changes, tune ups, and other events, as well as offers APIs that integrates with various systems or applications. It serves quick service restaurants; gyms, and health and fitness facilities; casinos, golf courses, bowling centers, and comedy clubs; retail stores; real estate and insurance sectors; digital marketing agencies; and investor relation firms, as well as bars, salons, and medical professionals. The company is based in Pleasant Hill, California.

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.