Financial Review: Q2 (NYSE:QTWO) & UserTesting (NYSE:USER)

UserTesting (NYSE:USERGet Rating) and Q2 (NYSE:QTWOGet Rating) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.


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

Net Margins Return on Equity Return on Assets
UserTesting -35.63% -47.37% -24.49%
Q2 -18.50% -9.53% -3.32%

Analyst Ratings

This is a summary of recent ratings for UserTesting and Q2, as reported by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UserTesting 0 10 1 0 2.09
Q2 1 3 6 0 2.50

UserTesting presently has a consensus price target of $7.94, suggesting a potential upside of 5.83%. Q2 has a consensus price target of $46.92, suggesting a potential upside of 56.62%. Given Q2’s stronger consensus rating and higher possible upside, analysts clearly believe Q2 is more favorable than UserTesting.

Volatility & Risk

UserTesting has a beta of 3.04, indicating that its share price is 204% more volatile than the S&P 500. Comparatively, Q2 has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.

Valuation & Earnings

This table compares UserTesting and Q2’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UserTesting $147.40 million 7.36 -$50.72 million ($0.57) -13.16
Q2 $498.72 million 3.46 -$112.75 million ($1.78) -16.83

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

Institutional & Insider Ownership

48.3% of UserTesting shares are owned by institutional investors. 38.5% of UserTesting shares are owned by insiders. Comparatively, 3.5% of Q2 shares are owned by 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.

About UserTesting

(Get Rating)

UserTesting, Inc. engages in the operation of a software-as-a-service (SaaS) platform that enables organizations to know experiences of people as they engage with products, designs, apps, processes, concepts, or brands in the United States, the United Kingdom, and internationally. Its platform captures customer perspectives from targeted audiences who share their thoughts for digital, real-world, or omnichannel experiences. The company sells through a direct selling motion with field sales representatives; and inside sales organization that sells to mid-market, and small and medium-sized business customers. It serves customers in B2B and B2C technology, health and fitness, retail and apparel, travel and hospitality, financial services, automotive and transportation, food and beverage, consumer products, and other industries. The company was incorporated in 2007 and is based in San Francisco, California.

About Q2

(Get Rating)

Q2 Holdings, Inc. provides cloud-based digital banking solutions to regional and community financial institutions (RCFIs) in the United States. The company offers Q2 Consumer Banking, a browser-based digital banking solution and comprehensive financial institution branded digital banking capabilities; Q2 Small Business and Commercial, a mobile and tablet digital banking solution; Q2mobile Remote Deposit Capture, a partnered solution that allows remote check deposit capture. It also provides 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. In addition, the company offers Q2 Gro, a digital account opening, and digital sales and marketing platform; Q2 Biller Direct, a bill payment solution; ClickSWITCH allows financial institutions to direct deposits to the end user. 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. Futher, it provides Q2 Contextual PFM, which allows end users to add external accounts and view them together with internal accounts on digital banking home page; Q2 Goals that enables end users to establish and save towards specific savings goals; Q2 Cloud Lending, a digital lending and leasing platform; PrecisionLender platform, a cloud-based, data-driven sales enablement, pricing, and portfolio management solution; and Q2 BaaS, a portfolio of open API financial services. 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.

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