Five9 (NASDAQ:FIVN – Get Free Report) and Zapata Quantum (OTCMKTS:ZPTA – Get Free Report) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.
Profitability
This table compares Five9 and Zapata Quantum’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Five9 | 4.51% | 12.85% | 5.62% |
| Zapata Quantum | N/A | -7.23% | -26.43% |
Insider and Institutional Ownership
96.6% of Five9 shares are held by institutional investors. Comparatively, 51.2% of Zapata Quantum shares are held by institutional investors. 1.2% of Five9 shares are held by company insiders. Comparatively, 39.3% of Zapata Quantum 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 Five9 and Zapata Quantum”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Five9 | $1.15 billion | 1.84 | $39.42 million | $0.67 | 41.90 |
| Zapata Quantum | $5.68 million | 23.87 | $9.34 million | ($0.02) | -36.20 |
Five9 has higher revenue and earnings than Zapata Quantum. Zapata Quantum is trading at a lower price-to-earnings ratio than Five9, indicating that it is currently the more affordable of the two stocks.
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, Zapata Quantum has a beta of 21.2, indicating that its stock price is 2,020% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for Five9 and Zapata Quantum, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Five9 | 0 | 9 | 12 | 0 | 2.57 |
| Zapata Quantum | 0 | 1 | 1 | 1 | 3.00 |
Five9 currently has a consensus price target of $33.94, suggesting a potential upside of 20.92%. Zapata Quantum has a consensus price target of $1.00, suggesting a potential upside of 38.10%. Given Zapata Quantum’s stronger consensus rating and higher possible upside, analysts clearly believe Zapata Quantum is more favorable than Five9.
Summary
Five9 beats Zapata Quantum on 9 of the 15 factors compared between the two stocks.
About Five9
Five9 provides cloud-based contact center software that helps businesses manage customer service and sales interactions. Its platform supports communications across channels such as phone, email, chat and messaging, and includes tools for routing, reporting and managing customer interactions. The company also offers artificial intelligence capabilities, including virtual agents and agent-assistance tools, along with workforce engagement and analytics products. These services are designed to help organizations automate routine interactions and support human agents.
About Zapata Quantum
Zapata Computing Holdings Inc. operates as an industrial generative artificial intelligence (AI) software company in the United States. The company offers subscription-based solutions that combine software and services to develop generative AI applications, as well as accompanying services to solve complex industrial problems. It also provides Zapata AI Sense, a suite of algorithms and complex mathematical models to enhance analytics and other data-driven applications; Zapata AI Prose, a set of generative AI solutions based on large language models for generic chatbot applications; and Orquestra, an industrial generative AI application development platform, which provides sense and prose.
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