Comparing Q2 (NYSE:QTWO) & Cango (NYSE:CANG)

Cango (NYSE:CANG – Get Free Report) and Q2 (NYSE:QTWO – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Insider and Institutional Ownership

4.2% of Cango shares are held by institutional investors. 29.1% of Cango 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 is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Cango and Q2, as provided by MarketBeat.com.

Cango currently has a consensus target price of $30.00, suggesting a potential upside of 1,026.13%. Q2 has a consensus target price of $76.17, suggesting a potential upside of 34.87%. Given Cango’s higher probable upside, analysts plainly believe Cango is more favorable than Q2.

Profitability

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

Volatility and Risk

Cango has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Q2 has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500.

Earnings & Valuation

This table compares Cango and Q2″s top-line revenue, earnings per share and valuation.

Q2 has higher revenue and earnings than Cango. Cango 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 Cango on 11 of the 15 factors compared between the two stocks.

About Cango

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Cango Inc. operates an automotive transaction service platform that connects dealers, original equipment manufacturers, financial institutions, car buyers, insurance brokers, and companies in the People's Republic of China. The company offers automobile trading solutions comprising car sourcing, transaction facilitation, logistics, and warehousing support for dealers through Cango Haoche app that offers new car transaction services, and Cango U-Car app that offers used-car transaction services. It also provides automotive financing facilitation services that include facilitating financing transactions from financial institutions to car buyers, which comprises credit origination, credit assessment, credit servicing, and delinquent asset management services; facilitating financing transactions of car purchases for car buyers; and after-market services to car buyers, which includes facilitating the sale of insurance policies from insurance brokers or companies. The company was founded in 2010 and is headquartered in Shanghai, the People's Republic of China.

About Q2

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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.