Contrasting ReposiTrak (NYSE:TRAK) & Q2 (NYSE:QTWO)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ReposiTrak	0	1	0	0	2.00
Q2	0	3	7	0	2.70

Q2 has a consensus target price of $75.27, indicating a potential upside of 66.70%. Given Q2’s stronger consensus rating and higher probable upside, analysts clearly believe Q2 is more favorable than ReposiTrak.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ReposiTrak	30.75%	14.49%	12.94%
Q2	8.99%	14.68%	6.83%

Institutional & Insider Ownership

27.4% of ReposiTrak shares are held by institutional investors. 41.0% of ReposiTrak shares are held by company insiders. Comparatively, 0.9% of Q2 shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ReposiTrak	$22.61 million	7.82	$6.98 million	$0.37	26.27
Q2	$794.81 million	3.56	$52.01 million	$1.12	40.32

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

Risk & Volatility

ReposiTrak has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Q2 has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.

Summary

Q2 beats ReposiTrak on 9 of the 14 factors compared between the two stocks.

About ReposiTrak

Park City Group, Inc., a software-as-a-service provider, designs, develops, and markets proprietary software products in North America. The company offers ReposiTrak MarketPlace, a supplier discovery and B2B e-commerce solution; ReposiTrak Compliance and Food Safety solutions, which reduces potential regulatory and legal risk from their supply chain partners; and ReposiTrak Supply Chain solutions that enables customers to manage relationships with suppliers. It also provides ScoreTracker, Vendor Managed Inventory, Store Level Ordering and Replenishment, Enterprise Supply Chain Planning, Fresh Market Manager, and ActionManager supply chain solutions to manage inventory, product mix, and labor. In addition, the company offers business-consulting services to suppliers and retailers in the grocery, convenience store, and specialty retail industries, as well as professional consulting services. It primarily serves multi-store retail chains, wholesalers and distributors, and their suppliers. The company is headquartered in Murray, Utah.

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.