Q2 Holdings (QTWO)vsSAP SE ADR (SAP)
QTWO
Q2 Holdings
$46.20
-1.03%
TECHNOLOGY · Cap: $2.91B
SAP
SAP SE ADR
$168.95
-1.20%
TECHNOLOGY · Cap: $217.55B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 4530% more annual revenue ($36.80B vs $794.81M). SAP leads profitability with a 19.5% profit margin vs 6.5%. SAP appears more attractively valued with a PEG of 0.79. SAP earns a higher WallStSmart Score of 58/100 (C).
QTWO
Buy52
out of 100
Grade: C-
SAP
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-57.1%
Fair Value
$36.04
Current Price
$46.20
$10.16 premium
Margin of Safety
-88.8%
Fair Value
$104.04
Current Price
$168.95
$64.91 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 108.0% YoY
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Strong operational efficiency at 29.2%
Generating 1.1B in free cash flow
Areas to Watch
6.5% margin — thin
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
Moderate valuation
3.3% revenue growth
Comparative Analysis Report
WallStSmart ResearchBull Case : QTWO
The strongest argument for QTWO centers on EPS Growth. Revenue growth of 13.8% demonstrates continued momentum.
Bull Case : SAP
The strongest argument for SAP centers on Market Cap, Altman Z-Score, Debt/Equity. Profitability is solid with margins at 19.5% and operating margin at 29.2%. PEG of 0.79 suggests the stock is reasonably priced for its growth.
Bear Case : QTWO
The primary concerns for QTWO are Profit Margin, PEG Ratio, P/E Ratio. A P/E of 60.6x leaves little room for execution misses.
Bear Case : SAP
The primary concerns for SAP are P/E Ratio, Revenue Growth.
Key Dynamics to Monitor
QTWO carries more volatility with a beta of 1.46 — expect wider price swings.
QTWO is growing revenue faster at 13.8% — sustainability is the question.
SAP generates stronger free cash flow (1.1B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SAP scores higher overall (58/100 vs 52/100), backed by strong 19.5% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Q2 Holdings
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Q2 Holdings, Inc. provides cloud-based digital banking solutions to Community and Regional Financial Institutions (RCFIs) in the United States. The company is headquartered in Austin, Texas.
SAP SE ADR
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.
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