BigCommerce vs Salesforce Which Performs Better?

BigCommerce and Salesforce are both well-known players in the technology industry, but their stocks have been heading in different directions. BigCommerce, as an e-commerce platform provider, has seen steady growth in its stock price as more businesses turn to online selling. On the other hand, Salesforce, a leading customer relationship management software company, has experienced some fluctuations in its stock price due to market uncertainties. Investors looking to capitalize on the booming e-commerce sector may find BigCommerce to be a more stable choice, while those seeking potential high returns may be drawn to Salesforce's innovative technology offerings.

BigCommerce or Salesforce?

When comparing BigCommerce and Salesforce, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between BigCommerce and Salesforce.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. BigCommerce has a dividend yield of -%, while Salesforce has a dividend yield of 0.47%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BigCommerce reports a 5-year dividend growth of 0.00% year and a payout ratio of -2.75%. On the other hand, Salesforce reports a 5-year dividend growth of 0.00% year and a payout ratio of 13.71%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with BigCommerce P/E ratio at -18.14 and Salesforce's P/E ratio at 58.49. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BigCommerce P/B ratio is 17.41 while Salesforce's P/B ratio is 5.72.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BigCommerce has seen a 5-year revenue growth of 1.55%, while Salesforce's is 1.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BigCommerce's ROE at -103.45% and Salesforce's ROE at 9.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.19 for BigCommerce and $325.25 for Salesforce. Over the past year, BigCommerce's prices ranged from $5.12 to $10.19, with a yearly change of 98.83%. Salesforce's prices fluctuated between $211.76 and $344.87, with a yearly change of 62.86%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.