Five9 (NASDAQ: FIVN) and Check Point Software Technologies (NASDAQ:CHKP) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Profitability

This table compares Five9 and Check Point Software Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Five9 -4.19% -34.14% -9.94%
Check Point Software Technologies 42.80% 22.46% 15.11%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Five9 and Check Point Software Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Five9 0 1 5 0 2.83
Check Point Software Technologies 0 17 9 0 2.35

Five9 presently has a consensus target price of $26.17, indicating a potential upside of 6.02%. Check Point Software Technologies has a consensus target price of $114.05, indicating a potential upside of 11.05%. Given Check Point Software Technologies’ higher possible upside, analysts plainly believe Check Point Software Technologies is more favorable than Five9.

Risk & Volatility

Five9 has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500. Comparatively, Check Point Software Technologies has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Institutional & Insider Ownership

93.5% of Five9 shares are owned by institutional investors. Comparatively, 71.7% of Check Point Software Technologies shares are owned by institutional investors. 9.1% of Five9 shares are owned by company insiders. Comparatively, 29.0% of Check Point Software Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Five9 and Check Point Software Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Five9 $162.09 million 8.47 -$11.86 million ($0.15) -164.53
Check Point Software Technologies $1.74 billion 9.64 $724.84 million $4.67 21.99

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

Summary

Check Point Software Technologies beats Five9 on 12 of the 14 factors compared between the two stocks.

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.

About Check Point Software Technologies

Check Point Software Technologies Ltd. (Check point) develops, markets and supports a range of products and services for information technology (IT) security. The Company’s products and services are sold to enterprises, service providers, small and medium sized businesses and consumers. It offers enterprises a platform to deploy independent, modular and interoperable security applications (Software Blades), such as firewall, virtual private network (VPN), intrusion prevention system (IPS), Application Control, Anti-Bot, antivirus, data loss prevention (DLP), policy management, event analysis or multi-domain management. The Company offers Software Blades grouped into functional packages to address specific security issues. It has product offerings under these packages, which include Next Generation Firewall, Next Generation Threat Prevention, Next Generation Secure Web Gateway and Next Generation Data Protection.

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