Comparing Q2 (NYSE:QTWO) and AvePoint (NASDAQ:AVPT)

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

Valuation & Earnings

This table compares AvePoint 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
AvePoint	$330.48 million	9.99	-$21.50 million	($0.16)	-102.19
Q2	$696.46 million	7.09	-$38.54 million	($0.65)	-121.91

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AvePoint	-2.36%	-3.16%	-1.55%
Q2	-5.53%	0.85%	0.33%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for AvePoint and Q2, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AvePoint	0	2	3	0	2.60
Q2	0	8	8	0	2.50

AvePoint currently has a consensus price target of $15.75, suggesting a potential downside of 3.67%. Q2 has a consensus price target of $100.60, suggesting a potential upside of 26.96%. Given Q2’s higher possible upside, analysts plainly believe Q2 is more favorable than AvePoint.

Volatility & Risk

AvePoint has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Q2 has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500.

Institutional and Insider Ownership

44.5% of AvePoint shares are owned by institutional investors. 26.2% of AvePoint shares are owned by company insiders. Comparatively, 3.0% of Q2 shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

About AvePoint

AvePoint, Inc. provides cloud-native data management software platform in North America, Europe, Middle East, Africa, and Asia Pacific. It also offers software-as-a-service solutions and productivity applications. The company offers modularity and cloud services architecture to address critical challenges and the management of data to organizations that leverage third-party cloud vendors, including Microsoft, Salesforce, Google, AWS, Box, DropBox, and others; license and support; and maintenance services. AvePoint, Inc. was incorporated in 2001 and is headquartered in Jersey City, New Jersey.

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.