Critical Analysis: Q2 (NYSE:QTWO) & Mobivity (OTCMKTS:MFON)

Mobivity (OTCMKTS:MFON) and Q2 (NYSE:QTWO) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.

Earnings and Valuation

This table compares Mobivity and Q2″s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mobivity	$6.98 million	3.64	-$12.06 million	($0.15)	-2.41
Q2	$696.46 million	7.62	-$38.54 million	($0.65)	-134.40

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mobivity	0	0	0	0	0.00
Q2	0	7	9	0	2.56

Q2 has a consensus target price of $105.27, suggesting a potential upside of 20.50%. Given Q2’s stronger consensus rating and higher probable upside, analysts clearly believe Q2 is more favorable than Mobivity.

Insider & Institutional Ownership

12.9% of Mobivity shares are owned by institutional investors. 40.0% of Mobivity shares are owned by insiders. Comparatively, 3.0% of Q2 shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mobivity	-218.89%	N/A	-495.44%
Q2	-5.53%	0.85%	0.33%

Risk & Volatility

Mobivity has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Q2 has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Summary

Q2 beats Mobivity on 9 of the 14 factors compared between the two stocks.

About Mobivity

Mobivity Holdings Corp. engages in developing and operating proprietary platforms to conduct national and localized, and data-driven marketing campaigns in the United States. The company's Recurrency platform unlocks valuable point of sale systems (POS) and mobile data to help transform customer transactions into actionable and attributable marketing insights and power Connected Rewards interactions. It also operates as a Software-as-a-Service platform used by convenience and quick service restaurant brands to build and engage with their customers; and enables and powers incentivized programs in digital environments. In addition, its platform offers POS data capture, analytics, offers and promotions, predictive offers, personalized receipt promotions, customized mobile messaging, belly loyalty, and other services. It markets and sells its services through direct sales, resellers, and agents, as well as online through its website. The company is based in Chandler, 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.