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

Q2 Holdings, Inc. and Workiva Inc. are both Software Application companies. Workiva Inc. is the larger, with a market value of $3.9B against $3.5B — 1.1× the size. Q2 Holdings, Inc. trades at the lower P/E: 37.9× against 83.9×. Workiva Inc. grew revenue faster over the last twelve months: 19.7% against 13.9%. Q2 Holdings, Inc. has the higher net margin (10.9% vs 4.87%) and the higher return on invested capital (9.92% vs 0.00%). Across the 20 metrics below, Q2 Holdings, Inc. leads on 13 and Workiva Inc. on 7.

Valuation

Metric QTWO WK Software Application median
P/E 37.93 83.90 24.79
P/S 4.14 4.01 2.67
P/B 5.45 n/m 3.01
Price to free cash flow 18.58 19.36 16.59
EV/EBITDA 23.99 93.95 14.40
EV/Sales 4.73 3.98 2.62
Earnings yield 2.64% 1.19% 0.00%
Free cash flow yield 5.38% 5.17% 1.91%

Profitability

Metric QTWO WK Software Application median
Gross margin 56.99% 80.21% 67.03%
Operating margin 10.03% 3.26% 0.00%
Net margin 10.87% 4.87% 0.00%
Free cash flow margin 22.34% 20.73% 4.32%
Return on equity 14.98% (57.50%) 0.00%
Return on assets 7.82% 3.46% 0.00%
Return on invested capital 9.92% 0.00% 0.00%

Growth

Metric QTWO WK Software Application median
Revenue growth (TTM) 13.90% 19.67% 12.40%
EPS growth (last fiscal year) 225.00% 52.53% —
Revenue growth, 5-year CAGR 14.56% 20.26% 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric QTWO WK Software Application median
Debt to equity 0.00 (8.05) 0.02
Current ratio 0.94 1.47 1.55
Net debt to EBITDA (1.05) 3.25 0.06

Dividend

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

Size

Metric QTWO WK Software Application median
Market cap 3.52b 3.89b 396.11m

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