Financial Contrast: Five9 (FIVN) and PagSeguro Digital (PAGS)
Five9 (NASDAQ:FIVN) and PagSeguro Digital (NYSE:PAGS) are both mid-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.
Insider & Institutional Ownership
97.8% of Five9 shares are held by institutional investors. 5.1% of Five9 shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Five9 and PagSeguro Digital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for Five9 and PagSeguro Digital, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Five9 presently has a consensus price target of $40.18, indicating a potential downside of 1.35%. PagSeguro Digital has a consensus price target of $34.55, indicating a potential upside of 62.87%. Given PagSeguro Digital’s stronger consensus rating and higher possible upside, analysts plainly believe PagSeguro Digital is more favorable than Five9.
Earnings & Valuation
This table compares Five9 and PagSeguro Digital’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Five9||$200.23 million||11.95||-$8.96 million||($0.17)||-239.59|
|PagSeguro Digital||$790.32 million||3.30||$149.95 million||$0.57||37.21|
PagSeguro Digital has higher revenue and earnings than Five9. Five9 is trading at a lower price-to-earnings ratio than PagSeguro Digital, indicating that it is currently the more affordable of the two stocks.
PagSeguro Digital beats Five9 on 8 of the 13 factors compared between the two stocks.
Five9, Inc., together with its subsidiaries, provides cloud software for contact centers in the United States and internationally. It offers 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; and acts as a hub for omnichannel engagement between the clients and their customers, which enables them to manage the end-to-end customer experience in a single unified architecture. The company's solution enables its clients to manage these customer interactions across various channels, including voice, chat, email, Web, social media, and mobile, as well as connects them to an appropriate agent. It also provides a set of management applications, including workforce management, reporting, quality management, and supervisor tools. The company serves customers in various industries, including banking and financial services, business process outsourcers, consumer, healthcare, and technology. It has a strategic partnership with Fuze. Five9, Inc. was founded in 2001 and is headquartered in San Ramon, California.
About PagSeguro Digital
PagSeguro Digital Ltd. provides financial technology solutions and services for micro-merchants, and small and medium-sized businesses in Brazil and internationally. The company's products and services include PagSeguro Ecosystem, an end-to-end digital ecosystem that operates as a closed loop where its clients are able to address their primary day to day financial needs, including receiving and spending funds, and managing and growing their businesses; and Free PagSeguro digital account, which centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem. It also acquires and sells point of sale (POS) devices and other products; and offers online gaming and cross-border digital services. In addition, the company offers functionalities, and value-added services and features, such as purchase protection mechanisms, antifraud platform, account and business management tools, eWallet, and its POS app. Further, it is involved in processing of back-office solutions, including sales reconciliation, and gateway solutions and services, as well as the capture of credit cards with administrators and acquirers. Additionally, the company engages in the in-person payment activities through POS devices; and issuance of prepaid cards to clients for spending or withdrawing account balances. It also provides online gaming and cross-border digital services; and operates an online platform that facilitates peer-to-peer lending. The company was founded in 2006 and is headquartered in São Paulo, Brazil. PagSeguro Digital Ltd. is a subsidiary of Universo Online S.A.
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