Head to Head Analysis: BigCommerce (NASDAQ:BIGC) & Presto Automation (NASDAQ:PRST)

BigCommerce (NASDAQ:BIGC) and Presto Automation (NASDAQ:PRST) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Analyst Recommendations

This is a summary of recent ratings and target prices for BigCommerce and Presto Automation, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BigCommerce	2	4	2	0	2.00
Presto Automation	0	0	0	0	0.00

BigCommerce presently has a consensus price target of $8.31, suggesting a potential upside of 30.09%. Given BigCommerce’s stronger consensus rating and higher possible upside, research analysts clearly believe BigCommerce is more favorable than Presto Automation.

Insider and Institutional Ownership

79.2% of BigCommerce shares are held by institutional investors. Comparatively, 20.9% of Presto Automation shares are held by institutional investors. 9.1% of BigCommerce shares are held by company insiders. Comparatively, 10.0% of Presto Automation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares BigCommerce and Presto Automation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BigCommerce	-8.43%	-58.18%	-3.74%
Presto Automation	N/A	N/A	N/A

Earnings & Valuation

This table compares BigCommerce and Presto Automation”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BigCommerce	$309.39 million	1.62	-$64.67 million	($0.36)	-17.75
Presto Automation	$26.14 million	0.00	-$34.48 million	($1.23)	0.00

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

Risk and Volatility

BigCommerce has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Presto Automation has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Summary

BigCommerce beats Presto Automation on 8 of the 14 factors compared between the two stocks.

About BigCommerce

BigCommerce Holdings, Inc. operates a software-as-a-service platform for enterprises, small businesses, and mid-markets in the United States, North and South America, Europe, the Middle East, Africa, and the AsiaPacific. The company provides a platform for launching and scaling an ecommerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integration into third-party services. It serves stores in various sizes, product categories, and purchase types, such as business-to-business and business-to-consumer. The company was founded in 2009 and is headquartered in Austin, Texas.

About Presto Automation

Presto Automation Inc. engages in the provision of artificial intelligence (AI) and automation solutions to the restaurant enterprise technology industry in the United States. The company offers Presto Voice, an AI solution to quick service restaurants that completes complex orders, including large orders with multiple menu modifications and add-ons, with limited on-site restaurant staff intervention; and Presto Touch, a pay-at-table tablet solution to casual dining chains that enables self-serve ordering, payment processing, personalization, and gaming experiences for restaurant guests. Presto Automation, Inc. was founded in 2008 and is headquartered in San Carlos, California.