SentinelOne (NYSE:S) and Q2 (NYSE:QTWO) Head-To-Head Review

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

Institutional & Insider Ownership

90.9% of SentinelOne shares are held by institutional investors. 0.9% of Q2 shares are held by company insiders. Comparatively, 4.3% of SentinelOne shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Q2 and SentinelOne”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Q2	$794.81 million	4.61	$52.01 million	$1.40	41.95
SentinelOne	$1.00 billion	8.82	-$450.73 million	($1.01)	-25.13

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Q2	10.87%	17.04%	8.80%
SentinelOne	-30.95%	-15.73%	-9.62%

Risk and Volatility

Q2 has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, SentinelOne has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Q2 and SentinelOne, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Q2	0	4	9	0	2.69
SentinelOne	1	13	16	0	2.50

Q2 presently has a consensus price target of $76.17, suggesting a potential upside of 29.69%. SentinelOne has a consensus price target of $23.75, suggesting a potential downside of 6.42%. Given Q2’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Q2 is more favorable than SentinelOne.

Summary

Q2 beats SentinelOne on 9 of the 14 factors compared between the two stocks.

About Q2

Q2 Holdings, Inc. provides cloud-based digital solutions to regional and community financial institutions in the United States. The company offers Digital Banking Platform, an end-to-end digital banking platform supports its financial institution customers in their delivery of unified digital banking services across digital channels. Its digital banking platform solutions, comprising Q2 Consumer Banking, Q2 Small Business and Commercial, Q2mobile Remote Deposit Capture, Q2 Sentinel, Q2 Patrol, Q2 SMART, Q2 Contextual Personal Financial Management, Q2 Goals, Q2 CardSwap, Q2 Gro, Q2 Innovation Studio, Q2 Biller Direct, ClickSWITCH, Sensibill, Centrix Dispute Tracking System, Centrix Payments I.Q. System, and Centrix Exact/Transaction Management System. The company also provides lending solutions, which consists precisionlender solutions, a cloud-based platform, data-driven sales enablement, relationship pricing, and portfolio management solution includes precisionlender platform, premium treasury pricing, data studio, and Andi; and Q2 Cloud Lending solutions, a cloud-based digital lending platform and end-to-end lending solution that allows financial institutions, FinTechs, and Alt-FIs to automate and digitize their lending activities, supporting digital lending applications, scoring, underwriting, servicing, and collections for multiple assets classes comprising Q2 CL portal, originate, loan, marketplace, and collections. In addition, it offers Q2 Innovation Studio, an application program interface, or API, based and software development kit, or SDK, based open technology platform; and Helix, a cloud-native, real-time core processing platform. 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 2004 and is headquartered in Austin, Texas.

About SentinelOne

SentinelOne, Inc. operates as a cybersecurity provider in the United States and internationally. Its Singularity Platform delivers an artificial intelligence-powered autonomous threat prevention, detection, and response capabilities across an organization's endpoints, cloud workloads, and identify credentials, which enables seamless and autonomous protection against a spectrum of cyber threats. In addition, it offers endpoint protection, endpoint detection and response, cloud and identity security, attack surface management, mobile endpoint security, xdr power tools, watchtower, and vigilance MDR. The company was formerly known as Sentinel Labs, Inc. and changed its name to SentinelOne, Inc. in March 2021. SentinelOne, Inc. was incorporated in 2013 and is headquartered in Mountain View, California.