Comprehensive Stock Comparison
Compare Q2 Holdings, Inc. (QTWO) vs Fair Isaac Corporation (FICO) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | FICO | 15.9% revenue growth vs QTWO's 14.1% |
| Value | QTWO | Lower P/E (16.5x vs 33.9x) |
| Quality / Margins | FICO | 31.9% net margin vs QTWO's 4.1% |
| Stability / Safety | FICO | Beta 1.00 vs QTWO's 1.30 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | FICO | -25.3% vs QTWO's -44.9% |
| Efficiency (ROA) | FICO | 35.5% ROA vs QTWO's 2.2%, ROIC 59.7% vs 4.5% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Q2 Holdings is a cloud-based digital banking platform provider for regional and community banks and credit unions in the United States. It generates revenue primarily through subscription fees for its software-as-a-service platform — which includes digital banking, lending, and account opening solutions — with additional income from professional services and transaction-based fees. The company's moat stems from its deep integration with core banking systems, regulatory compliance expertise, and the high switching costs for financial institutions once they adopt its comprehensive digital ecosystem.
Fair Isaac Corporation is a data analytics and decision management software company that helps businesses make better credit, fraud, and risk decisions. It generates revenue primarily through its FICO Scores business—which provides credit scoring data and analytics—and its Software segment that sells decision management platforms and professional services. The company's main competitive advantage is its FICO credit scoring system, which has become the industry standard used by over 90% of top U.S. lenders.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
FICO leads in 3 of 6 categories (Financial Metrics, Total Returns). QTWO leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
FICO is the larger business by revenue, generating $2.1B annually — 2.7x QTWO's $770M. FICO is the more profitable business, keeping 31.9% of every revenue dollar as net income compared to QTWO's 4.1%.
| Metric | QTWOQ2 Holdings, Inc. | FICOFair Isaac Corpor… |
|---|---|---|
| RevenueTrailing 12 months | $770M | $2.1B |
| EBITDAEarnings before interest/tax | $73M | $995M |
| Net IncomeAfter-tax profit | $32M | $658M |
| Free Cash FlowCash after capex | $164M | $735M |
| Gross MarginGross profit ÷ Revenue | +53.4% | +82.9% |
| Operating MarginEBIT ÷ Revenue | +2.8% | +47.5% |
| Net MarginNet income ÷ Revenue | +4.1% | +31.9% |
| FCF MarginFCF ÷ Revenue | +21.3% | +35.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | +15.2% | +16.4% |
| EPS Growth (YoY)Latest quarter vs prior year | +2.1% | +7.7% |
Valuation Metrics
At 53.1x trailing earnings, FICO trades at a 12% valuation discount to QTWO's 60.1x P/E. On an enterprise value basis, FICO's 38.8x EV/EBITDA is more attractive than QTWO's 74.9x.
| Metric | QTWOQ2 Holdings, Inc. | FICOFair Isaac Corpor… |
|---|---|---|
| Market CapShares × price | $3.0B | $33.5B |
| Enterprise ValueMkt cap + debt − cash | $3.0B | $36.4B |
| Trailing P/EPrice ÷ TTM EPS | 60.15x | 53.10x |
| Forward P/EPrice ÷ next-FY EPS est. | 16.49x | 33.93x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.94x |
| EV / EBITDAEnterprise value multiple | 74.85x | 38.76x |
| Price / SalesMarket cap ÷ Revenue | 3.78x | 16.82x |
| Price / BookPrice ÷ Book value/share | 4.73x | — |
| Price / FCFMarket cap ÷ FCF | 15.45x | 43.50x |
Profitability & Efficiency
| Metric | QTWOQ2 Holdings, Inc. | FICOFair Isaac Corpor… |
|---|---|---|
| ROE (TTM)Return on equity | +5.1% | — |
| ROA (TTM)Return on assets | +2.2% | +35.5% |
| ROICReturn on invested capital | +4.5% | +59.7% |
| ROCEReturn on capital employed | +4.9% | +78.5% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 0.52x | — |
| Net DebtTotal debt minus cash | -$22M | $2.9B |
| Cash & Equiv.Liquid assets | $368M | $134M |
| Total DebtShort + long-term debt | $346M | $3.1B |
| Interest CoverageEBIT ÷ Interest expense | 7.72x | 6.78x |
Total Returns (with DRIP)
A $10,000 investment in FICO five years ago would be worth $29,863 today (with dividends reinvested), compared to $3,850 for QTWO. Over the past 12 months, FICO leads with a -25.3% total return vs QTWO's -44.9%. The 3-year compound annual growth rate (CAGR) favors FICO at 27.7% vs QTWO's 14.2% — a key indicator of consistent wealth creation.
| Metric | QTWOQ2 Holdings, Inc. | FICOFair Isaac Corpor… |
|---|---|---|
| YTD ReturnYear-to-date | -30.7% | -14.2% |
| 1-Year ReturnPast 12 months | -44.9% | -25.3% |
| 3-Year ReturnCumulative with dividends | +49.1% | +108.1% |
| 5-Year ReturnCumulative with dividends | -61.5% | +198.6% |
| 10-Year ReturnCumulative with dividends | +137.4% | +1316.3% |
| CAGR (3Y)Annualised 3-year return | +14.2% | +27.7% |
Risk & Volatility
FICO is the less volatile stock with a 1.00 beta — it tends to amplify market swings less than QTWO's 1.30 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. FICO currently trades 63.6% from its 52-week high vs QTWO's 49.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | QTWOQ2 Holdings, Inc. | FICOFair Isaac Corpor… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.30x | 1.00x |
| 52-Week HighHighest price in past year | $96.68 | $2217.60 |
| 52-Week LowLowest price in past year | $46.16 | $1193.10 |
| % of 52W HighCurrent price vs 52-week peak | +49.8% | +63.6% |
| RSI (14)Momentum oscillator 0–100 | 25.1 | 47.7 |
| Avg Volume (50D)Average daily shares traded | 705K | 244K |
Analyst Outlook
Wall Street rates QTWO as "Buy" and FICO as "Buy". Consensus price targets imply 58.8% upside for QTWO (target: $76) vs 49.8% for FICO (target: $2111).
| Metric | QTWOQ2 Holdings, Inc. | FICOFair Isaac Corpor… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $76.40 | $2111.17 |
| # AnalystsCovering analysts | 32 | 18 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | 0 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.2% | +4.2% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Q2 Holdings, Inc. (QTWO) | 100 | 77.62 | -22.4% |
| Fair Isaac Corporat… (FICO) | 100 | 374.85 | +274.9% |
Fair Isaac Corporat… (FICO) returned +199% over 5 years vs Q2 Holdings, Inc. (QTWO)'s -62%. A $10,000 investment in FICO 5 years ago would be worth $29,863 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Q2 Holdings, Inc. (QTWO) | $150M | $795M | +429.1% |
| Fair Isaac Corporat… (FICO) | $881M | $2.0B | +125.9% |
Q2 Holdings, Inc.'s revenue grew from $150M (2016) to $795M (2025) — a 20.3% CAGR. Fair Isaac Corporation's revenue grew from $881M (2016) to $2.0B (2025) — a 9.5% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Q2 Holdings, Inc. (QTWO) | -24.2% | 6.5% | +127.0% |
| Fair Isaac Corporat… (FICO) | 12.4% | 32.7% | +163.7% |
Q2 Holdings, Inc.'s net margin went from -24% (2016) to 7% (2025). Fair Isaac Corporation's net margin went from 12% (2016) to 33% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Fair Isaac Corporat… (FICO) | 38.5 | 63.7 | +65.5% |
Fair Isaac Corporation has traded in a 32x–97x P/E range over 9 years; current trailing P/E is ~53x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Q2 Holdings, Inc. (QTWO) | -0.92 | 0.8 | +187.0% |
| Fair Isaac Corporat… (FICO) | 3.39 | 26.54 | +682.9% |
Q2 Holdings, Inc.'s EPS grew from $-0.92 (2016) to $0.80 (2025). Fair Isaac Corporation's EPS grew from $3.39 (2016) to $26.54 (2025) — a 26% CAGR.
Chart 6Free Cash Flow — 5 Years
Q2 Holdings, Inc. generated $195M FCF in 2025 (+3457% vs 2021). Fair Isaac Corporation generated $770M FCF in 2025 (+85% vs 2021).
QTWO vs FICO: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is QTWO or FICO a better buy right now?
Fair Isaac Corporation (FICO) offers the better valuation at 53.1x trailing P/E (33.9x forward), making it the more compelling value choice. Analysts rate Q2 Holdings, Inc. (QTWO) a "Buy" — based on 32 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — QTWO or FICO?
On trailing P/E, Fair Isaac Corporation (FICO) is the cheapest at 53.1x versus Q2 Holdings, Inc. at 60.1x. On forward P/E, Q2 Holdings, Inc. is actually cheaper at 16.5x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — QTWO or FICO?
Over the past 5 years, Fair Isaac Corporation (FICO) delivered a total return of +198.6%, compared to -61.5% for Q2 Holdings, Inc. (QTWO). A $10,000 investment in FICO five years ago would be worth approximately $30K today (assuming dividends reinvested). Over 10 years, the gap is even starker: FICO returned +1316% versus QTWO's +137.4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — QTWO or FICO?
By beta (market sensitivity over 5 years), Fair Isaac Corporation (FICO) is the lower-risk stock at 1.00β versus Q2 Holdings, Inc.'s 1.30β — meaning QTWO is approximately 30% more volatile than FICO relative to the S&P 500.
05Which has better profit margins — QTWO or FICO?
Fair Isaac Corporation (FICO) is the more profitable company, earning 32.7% net margin versus 6.5% for Q2 Holdings, Inc. — meaning it keeps 32.7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FICO leads at 46.5% versus 5.0% for QTWO. At the gross margin level — before operating expenses — FICO leads at 82.2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is QTWO or FICO more undervalued right now?
On forward earnings alone, Q2 Holdings, Inc. (QTWO) trades at 16.5x forward P/E versus 33.9x for Fair Isaac Corporation — 17.4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for QTWO: 58.8% to $76.40.
07Which pays a better dividend — QTWO or FICO?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is QTWO or FICO better for a retirement portfolio?
For long-horizon retirement investors, Fair Isaac Corporation (FICO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.00), +1316% 10Y return). Both have compounded well over 10 years (FICO: +1316%, QTWO: +137.4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between QTWO and FICO?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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