Q2 Holdings, Inc. (QTWO) vs Workiva Inc. (WK)

Q2 Holdings, Inc. and Workiva Inc. are both Software Application companies. Q2 Holdings, Inc. and Workiva Inc. are of similar size ($4.6B and $4.6B). Q2 Holdings, Inc. trades at the lower P/E: 42.6× against 75.7×. Workiva Inc. grew revenue faster over the last twelve months: 18.8% against 13.1%. Q2 Holdings, Inc. has the higher net margin (12.7% vs 6.31%) and the higher return on invested capital (12.7% vs 0.00%). Across the 20 metrics below, Q2 Holdings, Inc. leads on 11 and Workiva Inc. on 9.

Valuation

Metric QTWO WK Software Application median
P/E 42.58 75.71 25.90
P/S 5.40 4.65 3.04
P/B 7.14 n/m 2.60
Price to free cash flow 22.75 20.98 17.17
EV/EBITDA 27.49 113.45 15.48
EV/Sales 5.95 4.62 2.89
Earnings yield 2.35% 1.32% 0.00%
Free cash flow yield 4.40% 4.77% 1.98%

Profitability

Metric QTWO WK Software Application median
Gross margin 58.40% 80.64% 66.89%
Operating margin 12.39% 5.25% 0.00%
Net margin 12.66% 6.31% 0.00%
Free cash flow margin 23.76% 22.18% 5.77%
Return on equity 17.20% (152.95%) 0.00%
Return on assets 9.06% 4.53% 0.00%
Return on invested capital 12.65% 0.00% 0.00%

Growth

Metric QTWO WK Software Application median
Revenue growth (TTM) 13.08% 18.80% 12.27%
EPS growth (last fiscal year) 225.00% 52.53% 32.11%
Revenue growth, 5-year CAGR 14.56% 20.26% 14.34%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric QTWO WK Software Application median
Debt to equity 0.00 (15.47) 0.02
Current ratio 1.01 1.57 1.53
Net debt to EBITDA (1.05) 3.25 0.09

Dividend

Metric QTWO WK Software Application median
Dividend yield — — 1.10%
Payout ratio — — 0.28

Size

Metric QTWO WK Software Application median
Market cap 4.60b 4.64b 487.58m

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