Reviewing Five9 (NASDAQ:FIVN) and VTEX (NYSE:VTEX)

VTEX (NYSE:VTEX) and Five9 (NASDAQ:FIVN) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VTEX	11.98%	12.98%	8.76%
Five9	4.94%	12.92%	5.65%

Volatility and Risk

VTEX has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Five9 has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.

Institutional and Insider Ownership

63.7% of VTEX shares are held by institutional investors. Comparatively, 96.6% of Five9 shares are held by institutional investors. 40.9% of VTEX shares are held by insiders. Comparatively, 1.2% of Five9 shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for VTEX and Five9, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VTEX	0	6	3	0	2.33
Five9	0	7	10	1	2.67

VTEX currently has a consensus target price of $4.69, suggesting a potential upside of 29.67%. Five9 has a consensus target price of $33.14, suggesting a potential downside of 1.28%. Given VTEX’s higher probable upside, equities analysts plainly believe VTEX is more favorable than Five9.

Valuation & Earnings

This table compares VTEX and Five9″s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VTEX	$252.65 million	2.44	$20.01 million	$0.16	22.59
Five9	$1.15 billion	2.24	$39.42 million	$0.69	48.66

Five9 has higher revenue and earnings than VTEX. VTEX 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 VTEX on 9 of the 15 factors compared between the two stocks.

About VTEX

VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Singapore, Spain, the United Kingdom, and the United States. VTEX was founded in 2000 and is headquartered in London, the United Kingdom.

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.