Trimble (TRMB) vs. Q2 (QTWO) Head-To-Head Analysis

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

Risk and Volatility

Trimble has a beta of 2.36, meaning that its share price is 136% more volatile than the S&P 500. Comparatively, Q2 has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Trimble and Q2, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trimble 0 5 5 0 2.50
Q2 0 5 6 0 2.55

Trimble currently has a consensus target price of $41.22, indicating a potential downside of 3.80%. Q2 has a consensus target price of $45.70, indicating a potential upside of 16.73%. Given Q2’s stronger consensus rating and higher probable upside, analysts clearly believe Q2 is more favorable than Trimble.

Insider and Institutional Ownership

89.7% of Trimble shares are held by institutional investors. Comparatively, 91.4% of Q2 shares are held by institutional investors. 1.4% of Trimble shares are held by insiders. Comparatively, 24.5% of Q2 shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Trimble 7.66% 12.97% 8.05%
Q2 -15.27% -20.50% -10.45%

Earnings and Valuation

This table compares Trimble and Q2’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trimble $2.36 billion 4.57 $132.40 million $0.76 56.38
Q2 $150.22 million 10.86 -$36.35 million ($0.69) -56.74

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

Summary

Trimble beats Q2 on 8 of the 14 factors compared between the two stocks.

About Trimble

Trimble Inc., formerly Trimble Navigation Limited, is engaged in providing technology solutions that enable professionals and field mobile workers to transform their work processes. The Company’s solutions are used across a range of industries, including agriculture, architecture, civil engineering, survey and land administration, construction, geospatial, government, natural resources, transportation and utilities. The Company’s business segments include Building and Infrastructure, Geospatial, Resource and utilities and Transportation. The Buildings and Infrastructure segment serves customers working in architecture, engineering, construction and operations and maintenance. The Geospatial segment primarily serves customers working in surveying, engineering, government and land management. The Resources and Utilities segment serves customers working in agriculture, forestry, and utilities. The Transportation segment serves customers working in transportation.

About Q2

Q2 Holdings, Inc. is a provider of cloud-based digital banking solutions. The Company enables regional and community financial institutions (RCFIs), to deliver a suite of integrated digital banking services. The Company’s solutions all operate on a common platform that supports the delivery of unified digital banking services across online, mobile and voice channels. Its platform provides a single point of management enabling RCFIs to deliver targeted experiences, including tailored rights, features and branding to account holders. Its cloud-based solutions and common platform provide its RCFI customers with a view of account holder access and activity across devices and channels. Its solutions include Q2online, Q2 Risk & Fraud Analytics, Q2 Corporate, Q2 SMART, Q2mobility Application, Q2mobile Remote Deposit Capture, Q2text, Q2themes, Q2clarity, Centrix Dispute Tracking System (DTS), Centrix Payments I.Q. System (PIQS), and Centrix Exact/Transaction Management System (Exact/TMS).

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