Interactive Intelligence Group (NASDAQ: ININ) and Five9 (NASDAQ:FIVN) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Volatility & Risk

Interactive Intelligence Group has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500. Comparatively, Five9 has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.

Profitability

This table compares Interactive Intelligence Group and Five9’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Interactive Intelligence Group -4.92% -12.52% -4.48%
Five9 -7.08% -42.91% -11.76%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Interactive Intelligence Group and Five9, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Interactive Intelligence Group 0 1 0 0 2.00
Five9 1 1 5 0 2.57

Five9 has a consensus price target of $22.86, suggesting a potential downside of 4.36%. Given Five9’s stronger consensus rating and higher probable upside, analysts plainly believe Five9 is more favorable than Interactive Intelligence Group.

Earnings and Valuation

This table compares Interactive Intelligence Group and Five9’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Interactive Intelligence Group N/A N/A N/A ($1.47) -41.16
Five9 $179.93 million 7.32 $2.12 million ($0.23) -103.91

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

Insider & Institutional Ownership

83.2% of Interactive Intelligence Group shares are held by institutional investors. Comparatively, 91.2% of Five9 shares are held by institutional investors. 21.4% of Interactive Intelligence Group shares are held by insiders. Comparatively, 9.1% of Five9 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.

Summary

Five9 beats Interactive Intelligence Group on 6 of the 11 factors compared between the two stocks.

About Interactive Intelligence Group

Interactive Intelligence Group, Inc. is a provider of software and cloud services for customer engagement, communications and collaboration. The Company operates in the segment of interaction management software solutions licensing and associated services. It offers approximately three types of products, including on-premises software; a single-tenant cloud service, and a multi-tenant cloud service. The Company’s offerings are used across a range of vertical industries, including accounts receivable management, banking, government, healthcare, insurance, manufacturing, utilities and retail. Its PureCloud Engage is an omnichannel customer engagement cloud service designed for contact centers of all sizes. Its PureCloud Communicate is a communications and collaboration cloud service for enterprises of all sizes designed to support connected workforce. Its on-premises and single-tenant cloud products are available in approximately 24 languages and deployed in over 125 countries.

About Five9

Five9 Inc. (Five9) is a provider of cloud software for contact centers. The Company’s purpose-built Virtual Contact Center (VCC) cloud platform delivers a suite of applications that enable the breadth of contact center-related customer service, sales and marketing functions. The Company’s solution, which consists of its VCC cloud platform and applications, allows simultaneous management and optimization of customer interactions across voice, chat, e-mail, Web, social media and mobile channels, either directly or through its application programming interfaces (APIs). The Company’s VCC cloud platform matches each customer interaction with an appropriate agent resource and delivers relevant customer data to the agent in real-time through integrations with adjacent enterprise applications, such as customer relationship management (CRM) software, to optimize the customer experience and agent productivity.

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