Analyzing Five9 (NASDAQ:FIVN) and CSG Systems International (NASDAQ:CSGS)

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

Profitability

This table compares Five9 and CSG Systems International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Five9	-6.56%	-9.09%	-2.88%
CSG Systems International	5.56%	28.77%	6.37%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Five9 and CSG Systems International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five9	0	2	13	0	2.87
CSG Systems International	0	1	4	0	2.80

Five9 presently has a consensus price target of $82.71, suggesting a potential upside of 102.38%. CSG Systems International has a consensus price target of $61.67, suggesting a potential upside of 50.88%. Given Five9’s stronger consensus rating and higher probable upside, research analysts plainly believe Five9 is more favorable than CSG Systems International.

Valuation & Earnings

This table compares Five9 and CSG Systems International’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Five9	$910.49 million	3.32	-$81.76 million	($0.85)	-48.08
CSG Systems International	$1.17 billion	1.04	$66.25 million	$2.19	18.66

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

Volatility & Risk

Five9 has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, CSG Systems International has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.

Insider & Institutional Ownership

96.6% of Five9 shares are owned by institutional investors. Comparatively, 91.1% of CSG Systems International shares are owned by institutional investors. 1.8% of Five9 shares are owned by insiders. Comparatively, 3.1% of CSG Systems International shares are owned by 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.

Summary

CSG Systems International beats Five9 on 9 of the 14 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 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 CSG Systems International

CSG Systems International, Inc., together with its subsidiaries, provides revenue management and digital monetization, customer experience, and payment solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers Advanced Convergent Platform, a private SaaS platform; and related solutions, including service technician management, analytics, electronic bill presentment, etc. The company also provides a public SaaS-based revenue management and payments platform. In addition, it offers managed services; and professional services to implement, configure, and maintain its solutions, as well as licenses various solutions, such as mediation, partner management, rating, and charging. Further, the company provides operational services, including infrastructure management comprised of hardware, application, and environmental management; application configuration management, such as configuration development, release, and deployment; and business operations management, which includes event processing, revenue management, and settlement. It serves retail, financial services, healthcare, insurance, and government entities. The company was incorporated in 1994 and is headquartered in Englewood, Colorado.