Analyzing ReposiTrak (NYSE:TRAK) and Q2 (NYSE:QTWO)

ReposiTrak (NYSE:TRAK) and Q2 (NYSE:QTWO) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ReposiTrak	$22.61 million	8.13	$6.98 million	$0.37	27.35
Q2	$794.81 million	3.64	$52.01 million	$1.12	41.22

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

Analyst Ratings

This is a summary of recent ratings for ReposiTrak and Q2, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ReposiTrak	0	1	0	0	2.00
Q2	0	3	7	0	2.70

Q2 has a consensus price target of $75.27, indicating a potential upside of 63.03%. Given Q2’s stronger consensus rating and higher possible upside, analysts clearly believe Q2 is more favorable than ReposiTrak.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ReposiTrak	30.75%	14.44%	12.85%
Q2	8.99%	14.68%	6.83%

Insider and Institutional Ownership

27.4% of ReposiTrak shares are held by institutional investors. 41.0% of ReposiTrak shares are held by insiders. Comparatively, 0.9% of Q2 shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

ReposiTrak has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Q2 has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Summary

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

About ReposiTrak

Park City Group, Inc., a software-as-a-service provider, designs, develops, and markets proprietary software products in North America. The company offers ReposiTrak MarketPlace, a supplier discovery and B2B e-commerce solution; ReposiTrak Compliance and Food Safety solutions, which reduces potential regulatory and legal risk from their supply chain partners; and ReposiTrak Supply Chain solutions that enables customers to manage relationships with suppliers. It also provides ScoreTracker, Vendor Managed Inventory, Store Level Ordering and Replenishment, Enterprise Supply Chain Planning, Fresh Market Manager, and ActionManager supply chain solutions to manage inventory, product mix, and labor. In addition, the company offers business-consulting services to suppliers and retailers in the grocery, convenience store, and specialty retail industries, as well as professional consulting services. It primarily serves multi-store retail chains, wholesalers and distributors, and their suppliers. The company is headquartered in Murray, Utah.

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.