Reviewing Auddia (NASDAQ:AUUD) & Five9 (NASDAQ:FIVN)

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

Institutional and Insider Ownership

96.6% of Five9 shares are owned by institutional investors. 12.5% of Auddia shares are owned by company insiders. Comparatively, 2.4% of Five9 shares are owned 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.

Risk & Volatility

Auddia has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Five9 has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Auddia	N/A	-263.38%	-136.47%
Five9	-8.98%	-12.51%	-4.06%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Auddia	0	1	0	0	2.00
Five9	0	3	14	0	2.82

Five9 has a consensus target price of $87.80, suggesting a potential upside of 46.77%. Given Five9’s stronger consensus rating and higher probable upside, analysts clearly believe Five9 is more favorable than Auddia.

Valuation and Earnings

This table compares Auddia and Five9’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Auddia	N/A	N/A	-$6.90 million	($14.25)	-0.10
Five9	$910.49 million	4.85	-$81.76 million	($1.13)	-52.94

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

Summary

Five9 beats Auddia on 9 of the 13 factors compared between the two stocks.

About Auddia

Auddia Inc., a technology company, develops AI Platform for the audio and podcast markets. The company's flagship product is Faidr, a subscription based mobile application that enables users to listen to various streaming AM/FM radio stations without commercials. It also provides Vodacast, an interactive podcasting platform; and Podcast Hub, a content management system. The company was formerly known as Clip Interactive, LLC and changed its name to Auddia Inc. in November 2019. Auddia Inc. was founded in 2012 and is headquartered in Boulder, Colorado.

About Five9

Five9, Inc., together with its subsidiaries, provides intelligent cloud software for contact centers in the United States 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.