Comparing Roblox (NYSE:RBLX) & Q2 (NYSE:QTWO)

Roblox (NYSE:RBLX) and Q2 (NYSE:QTWO) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Volatility and Risk

Roblox has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Q2 has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500.

Institutional and Insider Ownership

91.1% of Roblox shares are held by institutional investors. 22.2% of Roblox shares are held by insiders. Comparatively, 3.0% of Q2 shares are held 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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roblox	$2.80 billion	11.00	-$1.15 billion	($1.72)	-29.91
Q2	$624.62 million	8.21	-$65.38 million	($1.16)	-73.35

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Roblox	-34.12%	-1,187.59%	-17.42%
Q2	-10.40%	-3.95%	-1.49%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Roblox and Q2, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roblox	0	8	13	1	2.68
Q2	1	5	8	0	2.50

Roblox presently has a consensus price target of $52.55, suggesting a potential upside of 2.16%. Q2 has a consensus price target of $73.64, suggesting a potential downside of 13.45%. Given Roblox’s stronger consensus rating and higher possible upside, research analysts plainly believe Roblox is more favorable than Q2.

Summary

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

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.

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.