Bitfarms (NASDAQ:BITF – Get Free Report) and Five9 (NASDAQ:FIVN – Get Free Report) are both mid-cap technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.
Institutional and Insider Ownership
20.6% of Bitfarms shares are held by institutional investors. Comparatively, 96.6% of Five9 shares are held by institutional investors. 9.5% of Bitfarms shares are held by company insiders. Comparatively, 1.2% of Five9 shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Bitfarms and Five9″s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bitfarms | $229.28 million | 9.12 | -$138.65 million | ($0.23) | -15.09 |
| Five9 | $1.15 billion | 2.22 | $39.42 million | $0.69 | 48.22 |
Five9 has higher revenue and earnings than Bitfarms. Bitfarms is trading at a lower price-to-earnings ratio than Five9, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Bitfarms has a beta of 3.77, suggesting that its share price is 277% more volatile than the S&P 500. Comparatively, Five9 has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.
Profitability
This table compares Bitfarms and Five9’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bitfarms | -48.26% | -4.48% | -3.71% |
| Five9 | 4.94% | 12.92% | 5.65% |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Bitfarms and Five9, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bitfarms | 1 | 1 | 5 | 0 | 2.57 |
| Five9 | 0 | 7 | 10 | 1 | 2.67 |
Bitfarms currently has a consensus target price of $4.67, indicating a potential upside of 34.73%. Five9 has a consensus target price of $33.14, indicating a potential downside of 0.38%. Given Bitfarms’ higher possible upside, equities research analysts clearly believe Bitfarms is more favorable than Five9.
Summary
Five9 beats Bitfarms on 11 of the 15 factors compared between the two stocks.
About Bitfarms
Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.
About Five9
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.
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