Analyzing Kaltura (NASDAQ:KLTR) & Five9 (NASDAQ:FIVN)

Kaltura (NASDAQ:KLTR – Get Free Report) and Five9 (NASDAQ:FIVN – Get Free Report) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Volatility and Risk

Kaltura has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Five9 has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.

Institutional and Insider Ownership

30.8% of Kaltura shares are owned by institutional investors. Comparatively, 96.6% of Five9 shares are owned by institutional investors. 16.3% of Kaltura shares are owned by insiders. Comparatively, 1.2% of Five9 shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Kaltura and Five9, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kaltura 1 0 1 0 2.00
Five9 0 8 11 0 2.58

Kaltura presently has a consensus target price of $3.00, suggesting a potential upside of 110.53%. Five9 has a consensus target price of $35.53, suggesting a potential downside of 5.94%. Given Kaltura’s higher probable upside, analysts clearly believe Kaltura is more favorable than Five9.

Profitability

This table compares Kaltura and Five9’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kaltura -6.92% -51.05% -2.33%
Five9 4.94% 12.92% 5.65%

Earnings and Valuation

This table compares Kaltura and Five9″s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kaltura $180.85 million 1.20 -$12.07 million ($0.09) -15.83
Five9 $1.15 billion 2.52 $39.42 million $0.69 54.75

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

Summary

Five9 beats Kaltura on 12 of the 14 factors compared between the two stocks.

About Kaltura

(Get Free Report)

Kaltura, Inc. provides various software-as-a-service (SaaS) products and solutions and a platform-as-a-service (PaaS) in the United States, Europe, the Middle East, Africa, and internationally. The company operates through two segments, Enterprise, Education, and Technology (EE&T); and Media and Telecom (M&T). It offers video products, such as virtual and hybrid events, webinars, video portals, online learning, and content portals for training, marketing, virtual and hybrid events, communication, collaboration, sales, and customer care; and education solutions, such as learning management system video and lecture capture solutions. The company also provides online video experiences, including for over-the-top (OTT) television, cloud TV, web video publishing, video-based teaching, learning, training, video-based marketing, and video-based collaboration. In addition, it offers application programming interfaces (APIs), software development kits, and experience components, including live, real-time and on-demand video, ingestion, transcoding, enrichment, management, distribution, engagement, monetization, and deep viewer analytics, as well as video player, video editor, video capture tool, and chat and networking widgets. The company serves a range of industries, including financial services, high technology, healthcare and pharmaceuticals, education, public sector, media, telecommunications, information technology (IT) and professional services, retail, and manufacturing. Kaltura, Inc. was incorporated in 2006 and is headquartered in New York, New York.

About Five9

(Get Free Report)

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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