Head-To-Head Contrast: Commerce.com (NASDAQ:CMRC) & Doximity (NYSE:DOCS)

Doximity (NYSE:DOCS) and Commerce.com (NASDAQ:CMRC) are both services companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Earnings & Valuation

This table compares Doximity and Commerce.com”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Doximity	$570.40 million	14.47	$223.18 million	$1.26	34.80
Commerce.com	$332.93 million	0.99	-$27.03 million	($0.16)	-25.31

Doximity has higher revenue and earnings than Commerce.com. Commerce.com is trading at a lower price-to-earnings ratio than Doximity, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Doximity	40.72%	24.63%	21.30%
Commerce.com	-3.93%	-6.66%	-0.82%

Risk and Volatility

Doximity has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Commerce.com has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Doximity and Commerce.com, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Doximity	0	1	0	1	3.00
Commerce.com	2	2	2	1	2.29

Commerce.com has a consensus target price of $8.30, suggesting a potential upside of 104.94%. Given Commerce.com’s higher probable upside, analysts clearly believe Commerce.com is more favorable than Doximity.

Insider & Institutional Ownership

87.2% of Doximity shares are held by institutional investors. Comparatively, 79.2% of Commerce.com shares are held by institutional investors. 31.3% of Doximity 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Doximity beats Commerce.com on 12 of the 14 factors compared between the two stocks.

About Doximity

Doximity, Inc. operates a cloud-based digital platform for medical professionals in the United States. The company’s cloud-based platform provides its members with tools built for medical professionals, enabling them to collaborate with their colleagues, coordinate patient care, conduct virtual patient visits, stay up-to-date with the latest medical news and research, and manage their careers. It primarily serves pharmaceutical companies and health systems. The company was formerly known as 3MD Communications, Inc. and changed its name to Doximity, Inc. in June 2010. Doximity, Inc. was incorporated in 2010 and is headquartered in San Francisco, 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.