Comparing Five9 (NASDAQ:FIVN) & Strategy (NASDAQ:MSTR)

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

Analyst Ratings

This is a summary of current ratings for Five9 and Strategy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five9	1	6	10	1	2.61
Strategy	0	4	12	2	2.89

Five9 presently has a consensus price target of $25.93, indicating a potential downside of 5.75%. Strategy has a consensus price target of $257.88, indicating a potential upside of 176.45%. Given Strategy’s stronger consensus rating and higher possible upside, analysts clearly believe Strategy is more favorable than Five9.

Institutional & Insider Ownership

96.6% of Five9 shares are held by institutional investors. Comparatively, 59.8% of Strategy shares are held by institutional investors. 1.2% of Five9 shares are held by company insiders. Comparatively, 6.5% of Strategy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Five9	4.87%	12.66%	5.52%
Strategy	-6,102.95%	-68.55%	-48.14%

Risk & Volatility

Five9 has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, Strategy has a beta of 3.54, suggesting that its share price is 254% more volatile than the S&P 500.

Earnings & Valuation

This table compares Five9 and Strategy”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	1.83	$39.42 million	$0.66	41.68
Strategy	$477.23 million	68.50	-$3.85 billion	($40.16)	-2.32

Five9 has higher revenue and earnings than Strategy. Strategy 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 Strategy on 8 of the 15 factors compared between the two stocks.

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.

About Strategy

Strategy Incorporated, formerly known as MicroStrategy, provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers Strategy ONE, a platform that allows non-technical users to access novel and actionable insights for decision-making, and Strategy Cloud for Government, which provides always-on threat monitoring designed to meet the strict technical and regulatory standards of governments and financial institutions. The company also delivers Strategy Support, helping customers achieve system availability and usage goals through responsive troubleshooting; Strategy Consulting, offering architecture and implementation services; and Strategy Education, which includes free and paid learning options. In addition, the company is actively involved in Bitcoin development. The company offers its services through direct sales force and channel partners. It serves the U.S. government, state and local governments, and government agencies, as well as a range of industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. The company was incorporated in 1989 and is headquartered in Tysons Corner, Virginia.