Shopify vs. BigCommerce: Which E-Commerce Stock is a Stronger Pick?

Shopify SHOP and BigCommerce BIGC are strong players in the e-commerce industry. While Shopify is growing its presence in the e-commerce domain by offering user-friendly tools and an extensive app marketplace, BigCommerce stands out with its robust built-in features and scalability, making it ideal for enterprises aiming for rapid growth. According to the Morder Intelligence report, the e-commerce market is projected to be worth $10.19 trillion in 2025 and is expected to reach $21.22 trillion by 2030, seeing a CAGR of 15.8% over the 2025-2030 time frame. Both SHOP and BIGC are likely to gain from the massive growth opportunity highlighted by the growth pace.Shopify or BigCommerce — Which of these e-commerce stocks has the greater upside potential? Let’s find out.The Case for SHOP StockShopify is benefiting from robust growth in its merchant base, driven by its merchant-friendly tools, including Shop Pay, Shopify Pay Instalments, Sign in with Shop and the Shop App. Strong adoption of these solutions holds promise for Shopify’s prospects.Among these offerings, Shop Pay stands out as a key driver of this momentum. The app processed $27 billion in gross merchandise value in the fourth quarter of 2024, up 50% year over year. It now represents 41% of gross payment volume, boosting Shopify’s transaction volume.Companies and brands like Reebok, Champion, Westwing and BarkBox are now available on Shopify. The company is also expanding its footprint across verticals, including apparel and accessories, as well as health and beauty. SHOP is expanding in Europe with the addition of brands like Karl Lagerfeld and FC Barcelona.Shopify’s investment in AI-driven tools like Shopify Sidekick and Shop Inbox is helping merchants improve customer engagement and streamline operations. By leveraging AI, Shopify makes its platform more powerful and user-friendly.An expanding partner base that includes YouTube, TikTok, Roblox, PayPal, Snap, Pinterest, Criteo, IBM, Cognizant, Amazon, and Adayen is expected to expand its merchant base further.The Case for BIGC StockBigCommerce is benefiting from its expanding portfolio, particularly with the introduction of Catalyst, enabling businesses to create unique and efficient B2B and B2C e-commerce experiences. The company also benefits from its AI-powered tools and integrations.The launch of Catalyst has been noteworthy. Catalyst is a new reference architecture that offers significant advantages in cost, time, and complexity, helping BigCommerce differentiate itself in the market. Catalyst has been well-received by customers, partners, and analysts, and BIGC plans to introduce more bundled solutions like Catalyst in 2025, further expanding its market position.Further expanding its portfolio in March, BIGC launched new B2B product enhancements, including Configure-Price-Quote and Multi-Company Account Hierarchy with Advanced Permissioning, designed to streamline sales processes and accelerate growth for merchants.BIGC’s Annual Recurring Revenue (ARR) grew 4% year over year to nearly $350 million, with enterprise ARR growing 7%, which now makes up 75% of the total ARR. This highlights the company’s growing strength in serving enterprise clients and further expanding its offerings, positioning BigCommerce for sustained growth in the e-commerce space.Stock Price Performance and Valuation of SHOP and BIGCIn the trailing 12-month period, Shopify shares have gained 26.8%, while BIGC shares have lost 10%. The drop in share price can be attributed to the challenging macroeconomic uncertainty. Along with this, a broader market weakness in the tech sector and persistent fear over mounting tariffs by the current government have added to the pressure. Stiff competition also remains a concern.SHOP and BIGC Stock Price PerformanceImage Source: Zacks Investment ResearchValuation-wise, SHOP and BIGC shares are currently overvalued, as suggested by a Value Score of F and D, respectively.In terms of forward 12-month Price/Sales, SHOP shares are trading at 10.34X, higher than BIGC’s 1.26X.SHOP and BIGC ValuationImage Source: Zacks Investment Research How Do Earnings Estimates Compare for SHOP & BIGC?The Zacks Consensus Estimate for SHOP’s 2025 earnings is pegged at $1.49 per share, which has been steady over the past 30 days, indicating a 14.62% increase year over year.Shopify Inc. Stock Price and Consensus Shopify Inc. price-consensus-chart | Shopify Inc. QuoteHowever, the Zacks Consensus Estimate for BIGC’s 2025 earnings is pegged at 27 cents per share, unchanged over the past 30 days, indicating a 3.57% decline year over year.BigCommerce Holdings, Inc. Stock Price and Consensus BigCommerce Holdings, Inc. price-consensus-chart | BigCommerce Holdings, Inc. QuoteFind the latest EPS estimates and surprises on Zacks Earnings Calendar.ConclusionWhile Shopify and BigCommerce carry a Zacks Rank #3 (Hold) each at present, we believe SHOP is well-poised to benefit from strong growth in its merchant base and expanding footprint. Shopify’s focus on improving its client base is a key catalyst for the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Shopify Inc. (SHOP): Free Stock Analysis Report BigCommerce Holdings, Inc. (BIGC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks