Contrasting Five9 (FIVN) & Square (SQ)
Five9 (NASDAQ: FIVN) and Square (NYSE:SQ) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.
Volatility and Risk
Five9 has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, Square has a beta of 4.96, indicating that its share price is 396% more volatile than the S&P 500.
Earnings and Valuation
This table compares Five9 and Square’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Five9||$162.09 million||8.40||-$11.86 million||($0.14)||-174.70|
|Square||$1.71 billion||11.10||-$171.59 million||($0.16)||-305.06|
Five9 has higher revenue, but lower earnings than Square. Square is trading at a lower price-to-earnings ratio than Five9, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Five9 and Square, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Five9 presently has a consensus target price of $26.17, indicating a potential upside of 6.98%. Square has a consensus target price of $32.95, indicating a potential downside of 32.49%. Given Five9’s stronger consensus rating and higher possible upside, equities analysts clearly believe Five9 is more favorable than Square.
This table compares Five9 and Square’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
91.6% of Five9 shares are owned by institutional investors. Comparatively, 53.6% of Square shares are owned by institutional investors. 9.1% of Five9 shares are owned by insiders. Comparatively, 32.7% of Square shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Square beats Five9 on 8 of the 13 factors compared between the two stocks.
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.
Square, Inc. (Square) is a commerce ecosystem. The Company enables its sellers start, run and grow their businesses. It combines software with hardware to enable sellers to turn mobile devices and computing devices into payments and point-of-sale solutions. Once a seller downloads the Square Point of Sale mobile application, they can take their first payment. With its offering, a seller can accept payments in person via magnetic stripe (a swipe), Europay, MasterCard, and Visa (EMV) (a dip), or Near Field Communication (NFC) (a tap); or online via Square Invoices, Square Virtual Terminal, or the seller’s Website. Once on its system, sellers gain access to technology and features, such as reporting and analytics, next-day settlements, digital receipts, payment dispute management and chargeback protection, and Payment Card Industry (PCI) compliance. On the consumer (buyer) side, Square Cash offers individuals access to a way to send and receive money.
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