VTEX (NYSE:VTEX) versus Five9 (NASDAQ:FIVN) Head to Head Contrast
by Danessa Lincoln · The Markets DailyVTEX (NYSE:VTEX – Get Free Report) and Five9 (NASDAQ:FIVN – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.
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% |
Analyst Recommendations
This is a summary of recent ratings 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 price target of $4.69, indicating a potential upside of 29.67%. Five9 has a consensus price target of $33.14, indicating a potential downside of 1.28%. Given VTEX’s higher possible upside, analysts clearly believe VTEX is more favorable than Five9.
Insider and Institutional Ownership
63.7% of VTEX shares are owned by institutional investors. Comparatively, 96.6% of Five9 shares are owned by institutional investors. 40.9% of VTEX shares are owned by company insiders. Comparatively, 1.2% of Five9 shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
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.
Valuation & Earnings
This table compares VTEX and Five9″s gross revenue, earnings per share 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.