Summary
- ChannelAdvisor is rated as the #1 channel management and #3 three search engine marketing vendor.
- ChannelAdvisor has not really capitalized on the amazing opportunity that the pandemic has provided eCommerce companies.
- Revenue growth the past 12 months is 7% compared to other eCommerce stocks that have achieved strong double-digit revenue growth.
- ChannelAdvisor is undervalued according to my relative valuation scheme but at this time I remain neutral due to industry headwinds and internal issues that need to be resolved.
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(Source: shutterstock)
If you are looking for an eCommerce investment that isn't too frothy, then ChannelAdvisor Corporation (ECOM) might be your best choice. Despite being the number one channel management vendor for nine straight years, and the number three search engine marketing vendor, ChannelAdvisor has not attracted the attention of Wall Street, unlike other eCommerce players such as Shopify Inc. (SHOP) and BigCommerce Holdings, Inc. (BCOM).
ChannelAdvisor is in the business of assisting companies in the management of their online sales channels, inventory, fulfillment partners and it also provides actionable analytics that customers can use to grow their sales.
(Source: ChannelAdvisor)
At present, ChannelAdvisor is very much undervalued relative to other eCommerce stocks and digital transformation stocks in general. (See analysis below.) But there is a good reason for ChannelAdvisor's low stock price. And that is that the company hasn't capitalized on the pandemic to the same extent as other eCommerce platforms, as you can see from the table below.
