SendGrid (NYSE: QTWO) and Q2 (NYSE:QTWO) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.
Insider & Institutional Ownership
57.9% of SendGrid shares are held by institutional investors. Comparatively, 93.6% of Q2 shares are held by institutional investors. 30.2% of SendGrid shares are held by insiders. Comparatively, 17.9% of Q2 shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for SendGrid and Q2, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SendGrid presently has a consensus price target of $31.40, suggesting a potential downside of 9.54%. Q2 has a consensus price target of $57.58, suggesting a potential downside of 7.94%. Given Q2’s higher possible upside, analysts clearly believe Q2 is more favorable than SendGrid.
This table compares SendGrid and Q2’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares SendGrid and Q2’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SendGrid||$111.89 million||14.39||-$6.25 million||($0.19)||-182.68|
|Q2||$193.98 million||13.82||-$26.16 million||($0.48)||-130.31|
SendGrid has higher earnings, but lower revenue than Q2. SendGrid is trading at a lower price-to-earnings ratio than Q2, indicating that it is currently the more affordable of the two stocks.
SendGrid beats Q2 on 9 of the 13 factors compared between the two stocks.
SendGrid Company Profile
SendGrid, Inc. operates as a digital communication platform in the United States and internationally. Its cloud-based platform provides various tools to the businesses, including developers and marketers to reach their customers using an email. The company offers services, such as email application programming interface (API), which allow developers to use its API in their preferred development framework and to use its platform to add email functionality to their applications; marketing campaigns that allow marketers to upload and manage customer contact lists, create and test email templates, and execute and analyze email campaigns to engage customers; and expert services to help businesses optimize their email delivery. The company was founded in 2009 and is based in Denver, Colorado.
Q2 Company Profile
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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