Five9 (NASDAQ: FIVN) is one of 65 publicly-traded companies in the “Application Software” industry, but how does it contrast to its competitors? We will compare Five9 to similar businesses based on the strength of its valuation, dividends, profitability, risk, analyst recommendations, institutional ownership and earnings.

Volatility and Risk

Five9 has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Five9’s competitors have a beta of 1.61, suggesting that their average stock price is 61% more volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Five9 $179.93 million $2.12 million -105.48
Five9 Competitors $761.46 million $137.65 million -12.09

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.

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 -7.08% -42.91% -11.76%
Five9 Competitors -65.85% -93.24% -17.61%

Analyst Recommendations

This is a summary of recent ratings for Five9 and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Five9 1 1 5 0 2.57
Five9 Competitors 181 1516 2905 98 2.62

Five9 presently has a consensus target price of $22.86, suggesting a potential downside of 5.78%. As a group, “Application Software” companies have a potential downside of 2.11%. Given Five9’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Five9 has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

91.0% of Five9 shares are held by institutional investors. Comparatively, 68.6% of shares of all “Application Software” companies are held by institutional investors. 9.1% of Five9 shares are held by insiders. Comparatively, 15.7% of shares of all “Application Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Five9 competitors beat Five9 on 7 of the 12 factors compared.

Five9 Company Profile

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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