Bitfarms (NASDAQ:BITF) & Q2 (NYSE:QTWO) Critical Review

Bitfarms (NASDAQ:BITF) and Q2 (NYSE:QTWO) are both mid-cap technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for Bitfarms and Q2, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitfarms	1	1	5	0	2.57
Q2	0	3	8	1	2.83

Bitfarms currently has a consensus target price of $4.67, indicating a potential upside of 34.73%. Q2 has a consensus target price of $75.64, indicating a potential upside of 21.88%. Given Bitfarms’ higher probable upside, equities research analysts plainly believe Bitfarms is more favorable than Q2.

Earnings & Valuation

This table compares Bitfarms and Q2″s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitfarms	$229.28 million	9.12	-$138.65 million	($0.23)	-15.09
Q2	$794.81 million	4.87	$52.01 million	$1.40	44.33

Q2 has higher revenue and earnings than Bitfarms. Bitfarms 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 Bitfarms and Q2’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitfarms	-48.26%	-4.48%	-3.71%
Q2	10.87%	17.04%	8.80%

Volatility & Risk

Bitfarms has a beta of 3.77, meaning that its share price is 277% more volatile than the S&P 500. Comparatively, Q2 has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Insider and Institutional Ownership

20.6% of Bitfarms shares are owned by institutional investors. 9.5% of Bitfarms shares are owned by company insiders. Comparatively, 0.9% of Q2 shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Q2 beats Bitfarms on 10 of the 15 factors compared between the two stocks.

About Bitfarms

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.

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.