Analyzing Doximity (NYSE:DOCS) & Bigcommerce (NASDAQ:BIGC)

Bigcommerce (NASDAQ:BIGCGet Free Report) and Doximity (NYSE:DOCSGet Free Report) are both services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Insider and Institutional Ownership

79.2% of Bigcommerce shares are held by institutional investors. Comparatively, 87.2% of Doximity shares are held by institutional investors. 5.0% of Bigcommerce shares are held by insiders. Comparatively, 31.3% of Doximity shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Bigcommerce N/A N/A N/A
Doximity 40.72% 24.63% 21.30%

Analyst Recommendations

This is a summary of current ratings and target prices for Bigcommerce and Doximity, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bigcommerce 0 0 1 0 3.00
Doximity 0 1 0 1 3.00

Bigcommerce currently has a consensus target price of $11.00, suggesting a potential upside of 162.53%. Given Bigcommerce’s higher possible upside, research analysts clearly believe Bigcommerce is more favorable than Doximity.

Valuation and Earnings

This table compares Bigcommerce and Doximity”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bigcommerce $334.94 million 1.00 -$17.62 million ($0.22) -19.05
Doximity $570.40 million 14.44 $223.18 million $1.26 34.71

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

Risk and Volatility

Bigcommerce has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Doximity has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Summary

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

About Bigcommerce

(Get Free Report)

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.

About Doximity

(Get Free Report)

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.

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