Commerce.com (NASDAQ:CMRC – Get Free Report) and Doximity (NYSE:DOCS – Get Free Report) are both services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.
Profitability
This table compares Commerce.com and Doximity’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Commerce.com | -3.93% | -6.66% | -0.82% |
| Doximity | 40.72% | 24.63% | 21.30% |
Valuation and Earnings
This table compares Commerce.com and Doximity”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Commerce.com | $332.93 million | 1.04 | -$27.03 million | ($0.16) | -26.69 |
| Doximity | $621.33 million | 14.09 | $223.18 million | $1.26 | 36.90 |
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.
Insider & Institutional Ownership
79.2% of Commerce.com shares are held by institutional investors. Comparatively, 87.2% of Doximity shares are held by institutional investors. 9.1% of Commerce.com shares are held by insiders. Comparatively, 31.3% of Doximity shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and target prices for Commerce.com and Doximity, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Commerce.com | 2 | 2 | 2 | 1 | 2.29 |
| Doximity | 0 | 1 | 0 | 1 | 3.00 |
Commerce.com presently has a consensus target price of $8.30, suggesting a potential upside of 94.38%. Given Commerce.com’s higher probable upside, equities research analysts plainly believe Commerce.com is more favorable than Doximity.
Volatility and Risk
Commerce.com has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Doximity has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.
Summary
Doximity beats Commerce.com on 12 of the 14 factors compared between the two stocks.
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.
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.
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