Contrasting BOX (BOX) & Q2 (QTWO)

BOX (NYSE: BOX) and Q2 (NYSE:QTWO) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Earnings & Valuation

This table compares BOX and Q2’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BOX $506.14 million 6.92 -$154.96 million ($1.16) -21.54
Q2 $193.98 million 12.49 -$26.16 million ($0.48) -118.85

Q2 has lower revenue, but higher earnings than BOX. Q2 is trading at a lower price-to-earnings ratio than BOX, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for BOX and Q2, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BOX 0 6 8 0 2.57
Q2 0 7 5 0 2.42

BOX currently has a consensus target price of $25.69, indicating a potential upside of 2.81%. Q2 has a consensus target price of $51.55, indicating a potential downside of 9.65%. Given BOX’s stronger consensus rating and higher possible upside, analysts clearly believe BOX is more favorable than Q2.

Profitability

This table compares BOX and Q2’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BOX -28.62% -466.74% -29.95%
Q2 -12.32% -16.28% -7.32%

Volatility & Risk

BOX has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Q2 has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.

Insider and Institutional Ownership

76.5% of BOX shares are held by institutional investors. Comparatively, 93.0% of Q2 shares are held by institutional investors. 8.5% of BOX shares are held by insiders. Comparatively, 17.9% of Q2 shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Q2 beats BOX on 9 of the 13 factors compared between the two stocks.

About BOX

Box, Inc. provides cloud content management platform that enables organizations of various sizes to manage and share their enterprise content from anywhere or any device. The company's Software-as-a-Service platform enables users to collaborate on content internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security, and compliance features. Box, Inc. offers its solution in 23 languages. It serves healthcare and life sciences, financial services, legal services, media and entertainment, retail, education, and energy industries, as well as government sector primarily in the United States. The company was formerly known as Box.net, Inc. and changed its name to Box, Inc. in November 2011. Box, Inc. was founded in 2005 and is headquartered in Redwood City, California.

About Q2

Q2 Holdings, Inc. provides cloud-based digital banking solutions to regional and community financial institutions (RCFIs) in the United States. It offers Q2online, a browser-based digital banking solution that delivers RCFI-branded digital banking capabilities; Q2 Sentinel, a security analytics solution; Q2 Corporate to support RCFIs to attract and retain larger commercial accounts; and Q2 SMART, a targeting and messaging platform. The company also provides Q2 Account Opening solution; Q2 Active/Active that operates various data centers; and Q2 Patrol, an event-driven validation product. In addition, it offers Q2mobility App, a mobile and tablet digital banking solution; Q2mobile Remote Deposit Capture, a partnered solution that allows remote check deposit capture; Q2 Person-to-Person Payments, a partnered secure and integrated person-to-person payments solution; Detection Monitoring Service, a security threat tracking solution; and Q2 CardSwap that allows account holders receiving newly issued cards to automatically change their payment information with existing subscription and digital point-of-sale services. Further, the company provides Q2text, a mobile solution, which enables digital banking activities through the text messaging function of the device; Q2voice, a voice-based solution for telephones; and Q2themes, a personalization solution for customizing digital banking services. Additionally, it offers Q2clarity, an analytics solution for Q2online customers; Centrix Dispute Tracking System, an electronic transaction dispute management solution; Centrix Payments I.Q. System, an ACH file monitoring and risk reporting solution; and Centrix Exact/Transaction Management System, a fraud prevention tool. The company was formerly known as CBG Holdings, Inc. and changed its name to Q2 Holdings, Inc. in March 2013. Q2 Holdings, Inc. was founded in 2005 and is headquartered in Austin, Texas.

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