Medical Transcription Billing (NASDAQ:MTBC) and Q2 (NYSE:QTWO) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Risk and Volatility
Medical Transcription Billing has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Q2 has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.
6.2% of Medical Transcription Billing shares are owned by institutional investors. Comparatively, 99.1% of Q2 shares are owned by institutional investors. 49.7% of Medical Transcription Billing shares are owned by company insiders. Comparatively, 17.9% of Q2 shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Medical Transcription Billing and Q2’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Medical Transcription Billing||-6.32%||-9.43%||-7.61%|
This is a breakdown of current ratings and price targets for Medical Transcription Billing and Q2, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Medical Transcription Billing||0||0||4||0||3.00|
Medical Transcription Billing currently has a consensus target price of $4.38, suggesting a potential downside of 8.66%. Q2 has a consensus target price of $68.38, suggesting a potential upside of 0.39%. Given Q2’s higher possible upside, analysts clearly believe Q2 is more favorable than Medical Transcription Billing.
Earnings and Valuation
This table compares Medical Transcription Billing and Q2’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Medical Transcription Billing||$50.55 million||1.14||-$2.14 million||($0.59)||-8.12|
|Q2||$241.10 million||12.31||-$35.39 million||($0.37)||-184.08|
Medical Transcription Billing has higher earnings, but lower revenue than Q2. Q2 is trading at a lower price-to-earnings ratio than Medical Transcription Billing, indicating that it is currently the more affordable of the two stocks.
About Medical Transcription Billing
Medical Transcription Billing, Corp. is a healthcare information technology company that provides an integrated suite of Web-based solutions, together with related business services, to healthcare providers practicing in ambulatory care settings. The Company’s offering, PracticePro, allows healthcare practices with the core software and business services on Software-as-a-Service (SaaS) platform. PracticePro includes practice management software and related tools, which facilitate the day-to-day operation of a medical practice; electronic health records (EHR), which allow its customers to qualify for government incentives; revenue cycle management (RCM) services, which include medical billing, analytics and related services, and mobile Health (mHealth) solutions, including smartphone applications that assist patients and healthcare providers in the provision of healthcare services. The Company offers a clearinghouse service, which allows clients to track claim status.
Q2 Holdings, Inc. provides cloud-based digital banking solutions to regional and community financial institutions (RCFIs) in the United States. It offers Q2 Digital Banking and Transactions, a browser-based digital banking solution that delivers RCFI-branded digital banking capabilities; Q2mobility App, a mobile and tablet digital banking solution; Q2mobile Remote Deposit Capture, a partnered solution that allows remote check deposit capture; and Q2 Person-to-Person Payments, a partnered secure and integrated person-to-person payments solution. The company also provides Q2 Corporate digital banking solutions designed to support commercial end users; Q2 Sentinel, a security analytics solution; Q2 Patrol, an event-driven validation product; Q2 SMART, a targeting and messaging platform; and Q2 CardSwap that allows account holders receiving newly issued cards to automatically change their payment information with existing subscription and digital point-of-sale services. In addition, it offers Q2 Gro, a digital account opening, and digital sales and marketing platform; Q2 Biller Direct, a bill payment solution; Centrix Dispute Tracking System, an electronic transaction dispute management solution; Centrix Payments I.Q. System, an ACH file monitoring and risk reporting solution; Centrix Exact/Transaction Management System, a fraud prevention tool; and Q2 Caliper Software Development Kit 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 2005 and is headquartered in Austin, Texas.
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