BILL Holdings, Inc. (BILL) vs Q2 Holdings, Inc. (QTWO)

BILL Holdings, Inc. and Q2 Holdings, Inc. are both Software Application companies. BILL Holdings, Inc. and Q2 Holdings, Inc. are of similar size ($3.8B and $3.5B). BILL Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Q2 Holdings, Inc. trades at 37.9×. Q2 Holdings, Inc. grew revenue faster over the last twelve months: 13.9% against 13.0%. Q2 Holdings, Inc. has the higher net margin (10.9% vs −0.68%) and the higher return on invested capital (9.92% vs −1.34%). Across the 20 metrics below, Q2 Holdings, Inc. leads on 11 and BILL Holdings, Inc. on 9.

Valuation

Metric BILL QTWO Software Application median
P/E n/m 37.93 24.79
P/S 2.67 4.14 2.67
P/B 1.25 5.45 3.01
Price to free cash flow 12.47 18.58 16.59
EV/EBITDA 87.20 23.99 14.40
EV/Sales 2.61 4.73 2.62
Earnings yield (0.27%) 2.64% 0.00%
Free cash flow yield 8.02% 5.38% 1.91%

Profitability

Metric BILL QTWO Software Application median
Gross margin 80.93% 56.99% 67.03%
Operating margin (4.44%) 10.03% 0.00%
Net margin (0.68%) 10.87% 0.00%
Free cash flow margin 21.45% 22.34% 4.32%
Return on equity (0.30%) 14.98% 0.00%
Return on assets (0.11%) 7.82% 0.00%
Return on invested capital (1.34%) 9.92% 0.00%

Growth

Metric BILL QTWO Software Application median
Revenue growth (TTM) 13.03% 13.90% 12.40%
EPS growth (last fiscal year) (148.03%) 225.00% —
Revenue growth, 5-year CAGR 47.32% 14.56% 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BILL QTWO Software Application median
Debt to equity 0.52 0.00 0.02
Current ratio 1.51 0.94 1.55
Net debt to EBITDA (2.05) (1.05) 0.06

Dividend

Metric BILL QTWO Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric BILL QTWO Software Application median
Market cap 3.83b 3.52b 396.11m

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