Q2 (NYSE:QTWO) vs. CommVault Systems (NASDAQ:CVLT) Head to Head Review

CommVault Systems (NASDAQ:CVLT) and Q2 (NYSE:QTWO) are both mid-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.

Volatility and Risk

CommVault Systems has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Q2 has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Valuation & Earnings

This table compares CommVault Systems and Q2″s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CommVault Systems	$1.18 billion	5.26	$70.66 million	$1.57	95.72
Q2	$794.81 million	4.43	$52.01 million	$1.40	40.34

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

Insider and Institutional Ownership

93.5% of CommVault Systems shares are held by institutional investors. 0.9% of CommVault Systems shares are held by insiders. Comparatively, 0.9% of Q2 shares are held 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.

Analyst Recommendations

This is a breakdown of current ratings for CommVault Systems and Q2, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CommVault Systems	0	10	10	1	2.57
Q2	0	4	9	0	2.69

CommVault Systems presently has a consensus target price of $152.62, indicating a potential upside of 1.56%. Q2 has a consensus target price of $76.17, indicating a potential upside of 34.87%. Given Q2’s stronger consensus rating and higher possible upside, analysts plainly believe Q2 is more favorable than CommVault Systems.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CommVault Systems	5.62%	88.75%	5.59%
Q2	10.87%	17.04%	8.80%

Summary

CommVault Systems beats Q2 on 9 of the 15 factors compared between the two stocks.

About CommVault Systems

Commvault Systems, Inc. provides data protection platform that helps customers to secure, defend, and recover their data in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; Commvault Complete Data Protection, a data protection solution; and Metallic Data Protection as-a-service, which delivers enterprise-grade data protection as a service on a cloud platform, with advanced built-in security controls. It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; and Metallic Recovery Reserve, an easy button to adopt secure and scalable cloud storage in minutes. In addition, the company provides technology consulting, Ransomware recovery, education, and remote managed services. Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers customer support, consulting, assessment and design, and installation services, as well as customer education and as-a-service under the Metallic brand. The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small or med-sized businesses, and government agencies. It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey.

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.