Crexendo (NASDAQ:CXDO – Get Free Report) and Q2 (NYSE:QTWO – Get Free Report) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.
Valuation & Earnings
This table compares Crexendo and Q2″s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Crexendo | $80.91 million | 2.43 | $5.07 million | $0.14 | 42.29 |
| Q2 | $794.81 million | 4.43 | $52.01 million | $1.40 | 40.34 |
Risk & Volatility
Crexendo has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Q2 has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.
Insider and Institutional Ownership
9.5% of Crexendo shares are owned by institutional investors. 47.2% of Crexendo shares are owned by company insiders. Comparatively, 0.9% of Q2 shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Crexendo and Q2’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Crexendo | 5.31% | 14.34% | 11.44% |
| Q2 | 10.87% | 17.04% | 8.80% |
Analyst Ratings
This is a summary of recent recommendations for Crexendo and Q2, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Crexendo | 0 | 1 | 3 | 0 | 2.75 |
| Q2 | 0 | 4 | 9 | 0 | 2.69 |
Crexendo presently has a consensus target price of $10.50, suggesting a potential upside of 77.36%. Q2 has a consensus target price of $76.17, suggesting a potential upside of 34.87%. Given Crexendo’s stronger consensus rating and higher probable upside, equities analysts clearly believe Crexendo is more favorable than Q2.
Summary
Q2 beats Crexendo on 8 of the 14 factors compared between the two stocks.
About Crexendo
Crexendo, Inc. provides cloud communication platform and services, video collaboration, and managed IT services for businesses in the United States and internationally. It operates through two segments, Cloud Telecommunications Services and Software Solutions. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services, as well as develops end user portals for account and license management, and billing and customer support. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Software Solutions segment provides a suite of unified communications, collaboration, video conferencing, and contact center solutions. This segment also offers SNAPsolution, an IP-based platform; SNAPaccel, a software-as-a-service based software; subscription maintenance and support services; and professional services, including consulting, technical support, resident engineer, design, and installation services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is based in Tempe, Arizona.
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.
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