DocuSign (NASDAQ:DOCU) vs. Qualys (NASDAQ:QLYS) Head-To-Head Comparison

DocuSign (NASDAQ:DOCU) and Qualys (NASDAQ:QLYS) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Institutional & Insider Ownership

75.7% of DocuSign shares are held by institutional investors. Comparatively, 86.9% of Qualys shares are held by institutional investors. 3.9% of DocuSign shares are held by insiders. Comparatively, 15.6% of Qualys shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

DocuSign has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Qualys has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for DocuSign and Qualys, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DocuSign 0 3 16 0 2.84
Qualys 2 5 1 0 1.88

DocuSign currently has a consensus price target of $314.78, indicating a potential upside of 19.22%. Qualys has a consensus price target of $109.50, indicating a potential downside of 4.86%. Given DocuSign’s stronger consensus rating and higher possible upside, analysts clearly believe DocuSign is more favorable than Qualys.

Profitability

This table compares DocuSign and Qualys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DocuSign -9.18% -23.08% -3.08%
Qualys 17.67% 17.14% 9.39%

Earnings & Valuation

This table compares DocuSign and Qualys’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DocuSign $1.45 billion 35.70 -$243.27 million ($0.75) -351.55
Qualys $362.96 million 12.35 $91.57 million $2.32 49.63

Qualys has lower revenue, but higher earnings than DocuSign. DocuSign is trading at a lower price-to-earnings ratio than Qualys, indicating that it is currently the more affordable of the two stocks.

Summary

Qualys beats DocuSign on 8 of the 14 factors compared between the two stocks.

About DocuSign

DocuSign, Inc. provides cloud-based electronic signature solutions. Its cloud based electronic signature platform helps companies and individuals securely collect information, automate data workflows and sign anything. The firm automates manual, paper-based processes allowing users to manage all aspects of documented business transactions include identity management, authentication, digital signature, forms and data collection, collaboration, workflow automation and storage. DocuSign was founded by Thomas H. Gonser and Court Lorenzini in 2003 and is headquartered in San Francisco, CA.

About Qualys

Qualys, Inc. engages in the provision of cloud security and compliance solutions. Its products enable organizations to identify security risks to information technology infrastructures; help protect information technology systems and applications from cyber attacks; and achieve compliance with internal policies and external regulations. The firm also offers solutions through a software-as-a-service model, primarily with renewable annual subscriptions. The company was founded by Philippe F. Courtot on December 30, 1999 and is headquartered in Foster City, CA.

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