Head to Head Review: Strategy (NASDAQ:MSTR) vs. Five9 (NASDAQ:FIVN)

Strategy (NASDAQ:MSTR) and Five9 (NASDAQ:FIVN) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Volatility & Risk

Strategy has a beta of 3.54, suggesting that its share price is 254% more volatile than the S&P 500. Comparatively, Five9 has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Strategy and Five9, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Strategy	0	4	12	2	2.89
Five9	1	6	10	1	2.61

Strategy presently has a consensus target price of $257.88, suggesting a potential upside of 176.45%. Five9 has a consensus target price of $25.93, suggesting a potential downside of 5.75%. Given Strategy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Strategy is more favorable than Five9.

Institutional and Insider Ownership

59.8% of Strategy shares are held by institutional investors. Comparatively, 96.6% of Five9 shares are held by institutional investors. 6.5% of Strategy shares are held by company insiders. Comparatively, 1.2% of Five9 shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Strategy and Five9″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Strategy	$477.23 million	68.50	-$3.85 billion	($40.16)	-2.32
Five9	$1.15 billion	1.83	$39.42 million	$0.66	41.68

Five9 has higher revenue and earnings than Strategy. Strategy is trading at a lower price-to-earnings ratio than Five9, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Strategy and Five9’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Strategy	-6,102.95%	-68.55%	-48.14%
Five9	4.87%	12.66%	5.52%

Summary

Five9 beats Strategy on 8 of the 15 factors compared between the two stocks.

About Strategy

Strategy Incorporated, formerly known as MicroStrategy, provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers Strategy ONE, a platform that allows non-technical users to access novel and actionable insights for decision-making, and Strategy Cloud for Government, which provides always-on threat monitoring designed to meet the strict technical and regulatory standards of governments and financial institutions. The company also delivers Strategy Support, helping customers achieve system availability and usage goals through responsive troubleshooting; Strategy Consulting, offering architecture and implementation services; and Strategy Education, which includes free and paid learning options. In addition, the company is actively involved in Bitcoin development. The company offers its services through direct sales force and channel partners. It serves the U.S. government, state and local governments, and government agencies, as well as a range of industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. The company was incorporated in 1989 and is headquartered in Tysons Corner, Virginia.

About Five9

Five9, Inc., together with its subsidiaries, provides intelligent cloud software for contact centers in the United States, India, and internationally. It offers a virtual contact center cloud platform that delivers a suite of applications, which enables the breadth of contact center-related customer service, sales, and marketing functions. The company’s platform comprises of including interactive virtual agent, agent assist, workflow automation, workforce engagement management, AI insights, and AI summaries that allows to manage and optimize customer interactions across voice, chat, email, web, social media, and mobile channels directly or through its application programming interfaces. It also matches each customer interaction with an agent resource and delivers customer data to the agent in real-time through integrations with adjacent enterprise applications, such as CRM software, to optimize the customer experience and enhance agent productivity. The company serves customers in various industries, such as banking and financial services, business process outsourcers, retail, healthcare, technology, and education. Five9, Inc. was incorporated in 2001 and is headquartered in San Ramon, California.