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

Analyst Recommendations

This is a breakdown of current ratings for Q2 and Blackbaud, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Q2 0 2 16 0 2.89
Blackbaud 1 3 0 0 1.75

Q2 currently has a consensus target price of $94.36, indicating a potential upside of 63.28%. Blackbaud has a consensus target price of $87.00, indicating a potential upside of 74.52%. Given Blackbaud’s higher possible upside, analysts plainly believe Blackbaud is more favorable than Q2.

Risk & Volatility

Q2 has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Blackbaud has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Q2 -22.47% -5.98% -2.27%
Blackbaud 1.32% 16.12% 3.36%

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Q2 $315.48 million 8.87 -$70.88 million ($0.44) -131.34
Blackbaud $900.42 million 2.72 $11.91 million $1.27 39.25

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

Summary

Blackbaud beats Q2 on 8 of the 11 factors compared between the two stocks.

About Q2

Q2 Holdings, Inc. provides cloud-based digital banking solutions to regional and community financial institutions (RCFIs) in the United States. It offers Q2 Digital Banking and Transactions, a browser-based digital banking solution that delivers RCFI-branded digital banking capabilities; Q2mobility App, a mobile and tablet digital banking solution; Q2mobile Remote Deposit Capture, a partnered solution that allows remote check deposit capture; and Q2 Person-to-Person Payments, a partnered secure and integrated person-to-person payments solution. The company also provides Q2 Corporate digital banking solutions designed to support commercial end users; Q2 Sentinel, a security analytics solution; Q2 Patrol, an event-driven validation product; Q2 SMART, a targeting and messaging platform; 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. In addition, it offers Q2 Gro, a digital account opening, and digital sales and marketing platform; Q2 Biller Direct, a bill payment solution; Centrix Dispute Tracking System, an electronic transaction dispute management solution; Centrix Payments I.Q. System, an ACH file monitoring and risk reporting solution; Centrix Exact/Transaction Management System, a fraud prevention tool; and Q2 Caliper Software Development Kit 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.

About Blackbaud

Blackbaud, Inc. provides cloud software solutions to nonprofits, foundations, companies, education institutions, healthcare organizations, individual change agents, and other charitable giving entities. The company offers fundraising and relationship management solutions and services, including Blackbaud Raiser's Edge NXT, Blackbaud CRM, Blackbaud Luminate CRM, Blackbaud eTapestry, Blackbaud TeamRaiser, everydayhero, Blackbaud Peer-to-Peer Fundraising, and Blackbaud Guided Fundraising; and marketing and engagement solutions, such as Blackbaud Luminate Online, Blackbaud Online Express, Blackbaud NetCommunity, Blackbaud Attentive.ly, and Blackbaud School Website System. It also provides Blackbaud Financial Edge NXT, Blackbaud Smart Tuition, and Blackbaud Smart Aid financial management solutions and services; and Blackbaud Grantmaking, Blackbaud Award Management, FIMS, and Blackbaud Outcomes grant and award management solutions. In addition, the company offers organizational and program management solutions and services comprising Blackbaud Student Information System, Blackbaud Learning Management System, Blackbaud Enrollment Management System, Blackbaud Altru, and Blackbaud Church Management; and Blackbaud Employee Giving and Blackbaud Employee Volunteering, and YourCause corporate social responsibility solutions. Further, it provides Blackbaud's SKY Intelligence analytics solutions, as well as donor acquisition, prospect research, data enrichment, and benchmarking and performance management solutions and services; and Blackbaud Merchant Services and Blackbaud Purchase Cards payment services. Additionally, the company offers customer support and maintenance, professional and managed, and training services. It has operations primarily in the United States, the United Kingdom, Canada, and Australia. The company was founded in 1981 and is headquartered in Charleston, South Carolina.

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