Bigcommerce (NASDAQ:BIGC) and Xperi (NYSE:XPER) Financial Review

Xperi (NYSE:XPER) and Bigcommerce (NASDAQ:BIGC) are both small-cap services companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Institutional & Insider Ownership

94.3% of Xperi shares are owned by institutional investors. Comparatively, 79.2% of Bigcommerce shares are owned by institutional investors. 2.1% of Xperi shares are owned by insiders. Comparatively, 5.0% of Bigcommerce shares are owned 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.

Earnings and Valuation

This table compares Xperi and Bigcommerce”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xperi	$448.11 million	0.64	-$56.34 million	($1.23)	-5.00
Bigcommerce	$334.94 million	0.72	-$17.62 million	($0.22)	-13.68

Bigcommerce has lower revenue, but higher earnings than Xperi. Bigcommerce is trading at a lower price-to-earnings ratio than Xperi, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Xperi and Bigcommerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xperi	-12.57%	-0.73%	-0.49%
Bigcommerce	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations and price targets for Xperi and Bigcommerce, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xperi	2	0	0	0	1.00
Bigcommerce	0	0	1	0	3.00

Bigcommerce has a consensus target price of $11.00, suggesting a potential upside of 265.45%. Given Bigcommerce’s stronger consensus rating and higher possible upside, analysts plainly believe Bigcommerce is more favorable than Xperi.

Volatility & Risk

Xperi has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Bigcommerce has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Summary

Bigcommerce beats Xperi on 10 of the 14 factors compared between the two stocks.

About Xperi

Xperi Holding Corporation, together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It operates through two segments, Product, and Intellectual Property Licensing. The company invents, develops, and delivers various technologies. It licenses audio, digital radio, imaging, edge-based machine learning, and multi-channel video user experience solutions to consumer electronics customers, automotive manufacturers, or supply chain partners. The company also provides licensing to multichannel video programming distributors, OTT video service providers, consumer electronics manufacturers, social media, and other new media companies in media industry; and memory, sensors, RF component, and foundry companies in semiconductor industry. It provides its technologies under the DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive brands. The company is headquartered in San Jose, California.

About Bigcommerce

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.