Five9 (NASDAQ:FIVN – Get Free Report) is one of 953 public companies in the “Software” industry, but how does it compare to its peers? We will compare Five9 to related businesses based on the strength of its risk, valuation, dividends, analyst recommendations, institutional ownership, profitability and earnings.
Profitability
This table compares Five9 and its peers’ 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 | -612.40% | 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 peers have a beta of 1.34, indicating that their average stock price is 34% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for Five9 and its peers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Five9 | 0 | 9 | 12 | 0 | 2.57 |
| Five9 Competitors | 5755 | 21555 | 44944 | 1498 | 2.57 |
Five9 currently has a consensus target price of $33.94, indicating a potential upside of 22.17%. As a group, “Software” companies have a potential upside of 30.07%. Given Five9’s peers stronger consensus rating and higher probable upside, analysts plainly believe Five9 has less favorable growth aspects than its peers.
Earnings & Valuation
This table compares Five9 and its peers gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Five9 | $1.15 billion | $39.42 million | 41.46 |
| Five9 Competitors | $1.80 billion | $385.91 million | 108.48 |
Five9’s peers have higher revenue and earnings than Five9. Five9 is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Insider & Institutional Ownership
96.6% of Five9 shares are owned by institutional investors. Comparatively, 41.9% of shares of all “Software” companies are owned by institutional investors. 1.2% of Five9 shares are owned by insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Five9 peers beat Five9 on 9 of the 13 factors compared.
Five9 Company Profile
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.
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