Q2 Holdings (NYSE: QTWO) is one of 97 public companies in the “Enterprise Software” industry, but how does it weigh in compared to its competitors? We will compare Q2 Holdings to similar businesses based on the strength of its earnings, profitability, risk, valuation, institutional ownership, dividends and analyst recommendations.

Institutional and Insider Ownership

92.7% of Q2 Holdings shares are owned by institutional investors. Comparatively, 60.5% of shares of all “Enterprise Software” companies are owned by institutional investors. 24.5% of Q2 Holdings shares are owned by insiders. Comparatively, 22.5% of shares of all “Enterprise Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Q2 Holdings and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Q2 Holdings $172.62 million -$17.33 million -52.02
Q2 Holdings Competitors $1.27 billion $348.14 million 35.98

Q2 Holdings’ competitors have higher revenue and earnings than Q2 Holdings. Q2 Holdings is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Q2 Holdings and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Q2 Holdings -18.45% -22.74% -11.59%
Q2 Holdings Competitors -24.69% -413.05% -8.16%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Q2 Holdings and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Q2 Holdings 0 1 7 0 2.88
Q2 Holdings Competitors 523 2431 4088 136 2.53

Q2 Holdings currently has a consensus price target of $42.14, suggesting a potential upside of 2.54%. As a group, “Enterprise Software” companies have a potential upside of 4.51%. Given Q2 Holdings’ competitors higher possible upside, analysts plainly believe Q2 Holdings has less favorable growth aspects than its competitors.

Risk and Volatility

Q2 Holdings has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500. Comparatively, Q2 Holdings’ competitors have a beta of 1.13, meaning that their average share price is 13% more volatile than the S&P 500.

Summary

Q2 Holdings beats its competitors on 7 of the 12 factors compared.

Q2 Holdings Company Profile

Q2 Holdings, Inc. is a provider of cloud-based digital banking solutions. The Company enables regional and community financial institutions (RCFIs), to deliver a suite of integrated digital banking services. The Company’s solutions all operate on a common platform that supports the delivery of unified digital banking services across online, mobile and voice channels. Its platform provides a single point of management enabling RCFIs to deliver targeted experiences, including tailored rights, features and branding to account holders. Its cloud-based solutions and common platform provide its RCFI customers with a view of account holder access and activity across devices and channels. Its solutions include Q2online, Q2 Risk & Fraud Analytics, Q2 Corporate, Q2 SMART, Q2mobility Application, Q2mobile Remote Deposit Capture, Q2text, Q2themes, Q2clarity, Centrix Dispute Tracking System (DTS), Centrix Payments I.Q. System (PIQS), and Centrix Exact/Transaction Management System (Exact/TMS).

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