Q2 (NYSE: QTWO) and HubSpot (NYSE:HUBS) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.
Risk and Volatility
Q2 has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, HubSpot has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500.
Institutional & Insider Ownership
90.0% of Q2 shares are owned by institutional investors. Comparatively, 98.7% of HubSpot shares are owned by institutional investors. 24.5% of Q2 shares are owned by insiders. Comparatively, 12.1% of HubSpot shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a summary of recent recommendations and price targets for Q2 and HubSpot, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Q2 currently has a consensus price target of $47.00, indicating a potential upside of 0.00%. HubSpot has a consensus price target of $92.67, indicating a potential downside of 21.00%. Given Q2’s higher possible upside, equities research analysts plainly believe Q2 is more favorable than HubSpot.
Earnings & Valuation
This table compares Q2 and HubSpot’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Q2||$193.98 million||10.18||-$26.16 million||($0.63)||-74.60|
|HubSpot||$375.61 million||11.82||-$39.71 million||($1.08)||-108.61|
Q2 has higher earnings, but lower revenue than HubSpot. HubSpot is trading at a lower price-to-earnings ratio than Q2, indicating that it is currently the more affordable of the two stocks.
This table compares Q2 and HubSpot’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
HubSpot beats Q2 on 9 of the 14 factors compared between the two stocks.
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).
HubSpot, Inc. (HubSpot) provides a cloud-based marketing and sales software platform. The Company’s software platform features integrated applications to help businesses attract visitors to their Websites, convert visitors into leads, close leads into customers and delight customers so that they become promoters of those businesses. These integrated applications include social media, search engine optimization, blogging, Website content management, marketing automation, e-mail, sales productivity, customer relationship management (CRM), analytics and reporting. The Company’s products include HubSpot Marketing, HubSpot CRM and HubSpot Sales. The Company offers Professional Services and support. It offers professional services to educate and train customers on how to leverage its software platform and inbound marketing methodology to transform how their business attracts, engages and delights customers.
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