Q2 (NYSE:QTWO – Get Free Report) and SentinelOne (NYSE:S – Get Free Report) are both mid-cap technology companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Institutional & Insider Ownership
90.9% of SentinelOne shares are owned by institutional investors. 0.9% of Q2 shares are owned by insiders. Comparatively, 4.3% of SentinelOne shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations 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 | 17 | 0 | 2.52 |
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% |
Volatility and Risk
Q2 has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, SentinelOne has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.
Earnings and Valuation
This table compares Q2 and SentinelOne”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Q2 | $846.20 million | 4.37 | $52.01 million | $1.40 | 42.40 |
| SentinelOne | $1.00 billion | 7.95 | -$450.73 million | ($1.01) | -22.65 |
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.
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.
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