Five9 (FIVN) and Its Competitors Financial Review

Five9 (NASDAQ:FIVN) is one of 953 publicly-traded companies in the “Software” industry, but how does it compare to its rivals? We will compare Five9 to related companies based on the strength of its earnings, risk, valuation, institutional ownership, analyst recommendations, profitability and dividends.

Risk and Volatility

Five9 has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Five9’s rivals have a beta of 1.27, suggesting that their average stock price is 27% more volatile than the S&P 500.

Valuation and Earnings

This table compares Five9 and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Five9	$1.15 billion	$39.42 million	51.84
Five9 Competitors	$1.90 billion	$385.94 million	110.46

Five9’s rivals have higher revenue and earnings than Five9. Five9 is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Five9 and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Five9	4.94%	12.92%	5.65%
Five9 Competitors	-620.53%	20.98%	-8.95%

Analyst Ratings

This is a summary of current ratings and price targets for Five9 and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five9	0	8	11	0	2.58
Five9 Competitors	5717	21423	44694	1492	2.57

Five9 presently has a consensus target price of $35.80, indicating a potential upside of 0.08%. As a group, “Software” companies have a potential upside of 28.45%. Given Five9’s rivals higher probable upside, analysts clearly believe Five9 has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

96.6% of Five9 shares are owned by institutional investors. Comparatively, 42.0% of shares of all “Software” companies are owned by institutional investors. 1.2% of Five9 shares are owned by insiders. Comparatively, 19.8% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Five9 rivals beat Five9 on 8 of the 13 factors compared.

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.