Braze (NASDAQ:BRZE – Get Free Report) and Q2 (NYSE:QTWO – Get Free Report) are both mid-cap technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.
Valuation and Earnings
This table compares Braze and Q2″s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Braze | $834.24 million | 6.23 | -$131.29 million | ($1.03) | -44.42 |
| Q2 | $794.81 million | 5.20 | $52.01 million | $1.69 | 39.60 |
Q2 has lower revenue, but higher earnings than Braze. Braze is trading at a lower price-to-earnings ratio than Q2, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Braze and Q2’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Braze | -13.55% | -16.11% | -8.86% |
| Q2 | 12.66% | 17.85% | 10.22% |
Analyst Ratings
This is a breakdown of current recommendations for Braze and Q2, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Braze | 1 | 17 | 5 | 0 | 2.17 |
| Q2 | 0 | 4 | 9 | 1 | 2.79 |
Braze presently has a consensus target price of $43.95, indicating a potential downside of 3.93%. Q2 has a consensus target price of $78.33, indicating a potential upside of 17.06%. Given Q2’s stronger consensus rating and higher probable upside, analysts plainly believe Q2 is more favorable than Braze.
Insider & Institutional Ownership
90.5% of Braze shares are owned by institutional investors. 12.5% of Braze shares are owned by insiders. Comparatively, 0.9% of Q2 shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Braze has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Q2 has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500.
Summary
Q2 beats Braze on 11 of the 15 factors compared between the two stocks.
About Braze
Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. The company offers Braze software development kits that automatically manage data ingestion and deliver mobile and web notifications, in-application/in-browser interstitial messages, and content cards; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; Partner Data Integrations, which allow brands to sync user cohorts from partners; Data Transformation, in which brands can programmatically sync and transform user data; and Braze Cloud Data Ingestion that enables brands to harness their customer data. It also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, the company provides Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences; campaigns, which allows customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; marketing pressure management; and reporting and analytics. Further, it offers personalization products, such as liquid templating platform, connected content platform, content blocks, intelligent timing and channel, personalized variant, and AI item recommendations, and catalogs; and action products. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.
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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