Head-To-Head Survey: Five9 (NASDAQ:FIVN) & Constellation Software (OTCMKTS:CNSWF)

Five9 (NASDAQ:FIVN) and Constellation Software (OTCMKTS:CNSWF) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Volatility & Risk

Five9 has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Constellation Software has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Earnings & Valuation

This table compares Five9 and Constellation Software”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Five9	$1.15 billion	2.24	$39.42 million	$0.69	48.68
Constellation Software	$11.62 billion	4.01	$512.00 million	$45.33	48.53

Constellation Software has higher revenue and earnings than Five9. Constellation Software 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 Five9 and Constellation Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Five9	4.94%	12.92%	5.65%
Constellation Software	7.60%	48.87%	13.09%

Institutional and Insider Ownership

96.6% of Five9 shares are owned by institutional investors. 1.2% of Five9 shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Five9 and Constellation Software, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five9	0	7	10	1	2.67
Constellation Software	0	1	6	1	3.00

Five9 presently has a consensus target price of $33.14, suggesting a potential downside of 1.33%. Given Five9’s higher probable upside, equities research analysts plainly believe Five9 is more favorable than Constellation Software.

Summary

Constellation Software beats Five9 on 8 of the 14 factors compared between the two stocks.

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.

About Constellation Software

Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses in Canada, the United States, Europe, and internationally. It provides mission critical software solutions for public and private sector markets. The company is also involved in the software licensing; and sale of third-party hardware. In addition, it offers professional, and maintenance and other recurring services. Constellation Software Inc. was incorporated in 1995 and is headquartered in Toronto, Canada.