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

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

Volatility and Risk

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

Institutional & Insider Ownership

20.6% of Bitfarms shares are owned by institutional investors. 9.5% of Bitfarms shares are owned by insiders. Comparatively, 0.9% of Q2 shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitfarms	1	1	5	0	2.57
Q2	0	3	9	1	2.85

Bitfarms presently has a consensus price target of $4.67, indicating a potential upside of 35.90%. Q2 has a consensus price target of $76.17, indicating a potential upside of 25.04%. Given Bitfarms’ higher possible upside, research analysts clearly believe Bitfarms is more favorable than Q2.

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%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitfarms	$229.28 million	9.04	-$138.65 million	($0.23)	-14.96
Q2	$794.81 million	4.78	$52.01 million	$1.40	43.51

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.

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.