Critical Survey: zSpace (NASDAQ:ZSPC) & Commerce.com (NASDAQ:CMRC)

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

Analyst Ratings

This is a breakdown of current recommendations for Commerce.com and zSpace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commerce.com	3	2	1	1	2.00
zSpace	1	2	0	0	1.67

Commerce.com presently has a consensus price target of $4.17, indicating a potential upside of 21.12%. zSpace has a consensus price target of $75.00, indicating a potential upside of 68,081.82%. Given zSpace’s higher probable upside, analysts clearly believe zSpace is more favorable than Commerce.com.

Institutional and Insider Ownership

79.2% of Commerce.com shares are held by institutional investors. 2.7% of Commerce.com shares are held by company insiders. Comparatively, 8.7% of zSpace shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Commerce.com	-1.66%	20.49%	2.92%
zSpace	-91.13%	N/A	-236.00%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commerce.com	$342.35 million	0.83	-$19.34 million	($0.07)	-49.14
zSpace	$27.86 million	0.15	-$25.39 million	($16.94)	-0.01

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

Volatility and Risk

Commerce.com has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, zSpace has a beta of -1.44, indicating that its stock price is 244% less volatile than the S&P 500.

Summary

Commerce.com beats zSpace on 12 of the 15 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 zSpace

zSpace Technologies, Inc. is a provider of commercial augmented reality and virtual reality technology principally in the education market. The Company offers differentiated hardware along with learning software modules for K-12 science, technology, engineering, game design and mathematics applications, as well as workforce-oriented career and technical education applications. zSpace Technologies Inc. is based in SAN JOSE, Calif.