Contrasting iPass (IPAS) and Five9 (FIVN)

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

Institutional and Insider Ownership

96.3% of Five9 shares are held by institutional investors. 8.2% of iPass shares are held by company insiders. Comparatively, 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 company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for iPass and Five9, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iPass 0 0 3 0 3.00
Five9 1 5 6 0 2.42

iPass presently has a consensus price target of $11.00, suggesting a potential upside of 609.68%. Five9 has a consensus price target of $38.40, suggesting a potential downside of 3.20%. Given iPass’ stronger consensus rating and higher possible upside, equities analysts clearly believe iPass is more favorable than Five9.

Volatility & Risk

iPass has a beta of -0.26, suggesting that its share price is 126% less volatile than the S&P 500. Comparatively, Five9 has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
iPass $54.40 million 0.24 -$20.55 million ($3.10) -0.50
Five9 $200.23 million 11.55 -$8.96 million ($0.17) -233.35

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

Profitability

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

Net Margins Return on Equity Return on Assets
iPass -40.13% -130,046.80% -105.22%
Five9 -1.04% -3.56% -1.30%

Summary

Five9 beats iPass on 10 of the 14 factors compared between the two stocks.

iPass Company Profile

iPass Inc. provides mobile connectivity that enables Wi-Fi access on various mobile devices in the United States and internationally. It offers mobile connectivity services that provide cloud-based solution allowing customers and their users access to its Wi-Fi network to stay connected to the people and information. The company provides business to business mobile connectivity solutions to large and small enterprises, as well as to strategic partnerships comprising original equipment manufacturers, loyalty programs, software product and service providers, and communication companies; and iPass SmartConnect that takes the guesswork out of Wi-Fi automatically connecting customers to the hotspot for their needs. It operates hotspots at airports, hotels, train stations, convention centers, outdoor venues, inflight, and others. The company sells its services directly through its global sales force, as well as through reseller and strategic partners. iPass Inc. was founded in 1996 and is headquartered in Redwood Shores, California.

Five9 Company Profile

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.

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