Head-To-Head Contrast: Carbon Black (NASDAQ:CBLK) versus Q2 (NASDAQ:QTWO)

Q2 (NYSE:QTWO) and Carbon Black (NASDAQ:CBLK) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of recent ratings for Q2 and Carbon Black, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Q2 1 3 12 0 2.69
Carbon Black 0 5 2 0 2.29

Q2 currently has a consensus target price of $79.54, indicating a potential downside of 0.82%. Carbon Black has a consensus target price of $19.63, indicating a potential downside of 24.62%. Given Q2’s stronger consensus rating and higher possible upside, research analysts clearly believe Q2 is more favorable than Carbon Black.

Profitability

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

Net Margins Return on Equity Return on Assets
Q2 -20.73% -13.40% -4.91%
Carbon Black -30.69% -37.82% -17.26%

Risk and Volatility

Q2 has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Carbon Black has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Insider & Institutional Ownership

76.1% of Carbon Black shares are owned by institutional investors. 12.8% of Q2 shares are owned by company insiders. Comparatively, 21.6% of Carbon Black shares are owned by company 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.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Q2 $241.10 million 15.84 -$35.39 million ($0.37) -216.76
Carbon Black $209.72 million 9.13 -$82.06 million ($1.40) -18.60

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

Summary

Q2 beats Carbon Black on 11 of the 14 factors compared between the two stocks.

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 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.

Carbon Black Company Profile

Carbon Black, Inc. provides security solutions in the United States and internationally. Its solutions enable customers to predict, prevent, detect, respond to, and remediate cyber-attacks before they cause a damaging incident or data breach. The company offers CB Predictive Security Cloud, a big data and analytics platform, which provides endpoint data collection, streaming analytics, collective intelligence, and open application program interfaces, as well as a set of security services. It also provides CB Defense, an antivirus, and endpoint detection and response solution; CB ThreatHunter, a threat hunting and incident response solution delivering unfiltered visibility for security operations centers and incident response teams; CB LiveOps, a real-time security operations solution that enables organizations to query various endpoints and remediate issues in real time; CB ThreatSight, a managed service for CB Defense customers designed to monitor, prioritize, and analyze threats; and CB Defense for VMware, an offering to protect applications running inside virtualized data centers. In addition, the company offers CB Response, an on premises or cloud based solution for threat hunting and incident response; and CB Protection, a product for application control to lock down critical infrastructure available on premise. Further, it provides unfiltered endpoint data collection; proprietary data-shaping technology; streaming analytics and collective intelligence; and extensible and open architecture products. The company serves security-focused enterprises, government agencies, and small-to-mid-sized organizations. The company was formerly known as Bit9, Inc. and changed its name to Carbon Black, Inc. in January 2016. Carbon Black, Inc. was founded in 2002 and is headquartered in Waltham, Massachusetts.

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