BigCommerce vs Squarespace

BigCommerce and Squarespace are two popular e-commerce platforms with publicly traded stocks. BigCommerce (BIGC) is focused solely on providing e-commerce solutions for businesses of all sizes, while Squarespace (SQSP) offers a broader range of services including website building and hosting. Both companies have seen fluctuations in their stock prices, with BigCommerce experiencing rapid growth, while Squarespace has faced some challenges following its recent IPO. Investors are closely monitoring both stocks to assess their long-term potential in the competitive e-commerce market.

BigCommerce or Squarespace?

When comparing BigCommerce and Squarespace, 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 Squarespace.

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 Squarespace has a dividend yield of -%. 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 -1.86%. On the other hand, Squarespace reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 -11.37 and Squarespace's P/E ratio at -1294.66. 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 17.92 while Squarespace's P/B ratio is -26.47.

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 Squarespace's is 1.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BigCommerce's ROE at -167.14% and Squarespace's ROE at 1.88%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.55 for BigCommerce and $46.51 for Squarespace. Over the past year, BigCommerce's prices ranged from $5.35 to $10.29, with a yearly change of 92.48%. Squarespace's prices fluctuated between $26.70 and $46.69, with a yearly change of 74.85%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.