Five9 (FIVN) vs. Its Peers Critical Contrast

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

Valuation & Earnings

This table compares Five9 and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Five9	$1.15 billion	$39.42 million	49.48
Five9 Competitors	$1.91 billion	$386.80 million	106.84

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five9	0	8	11	0	2.58
Five9 Competitors	5734	21488	44819	1493	2.57

Five9 currently has a consensus price target of $35.80, indicating a potential upside of 4.86%. As a group, “Software” companies have a potential upside of 28.54%. Given Five9’s competitors higher probable upside, analysts plainly believe Five9 has less favorable growth aspects than its competitors.

Profitability

This table compares Five9 and its competitors’ 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	-612.41%	21.13%	-8.86%

Volatility and Risk

Five9 has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Five9’s competitors have a beta of 1.34, indicating that their average stock price is 34% more volatile than the S&P 500.

Insider and Institutional Ownership

96.6% of Five9 shares are held by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are held by institutional investors. 1.2% of Five9 shares are held by company insiders. Comparatively, 19.9% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

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

Five9 Company Profile

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.