Financial Comparison: Five9 (FIVN) vs. Ooma (OOMA)

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Five9 and Ooma, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Five9 1 4 6 0 2.45
Ooma 0 2 2 0 2.50

Five9 presently has a consensus price target of $38.40, suggesting a potential downside of 5.93%. Ooma has a consensus price target of $15.50, suggesting a potential upside of 1.37%. Given Ooma’s stronger consensus rating and higher probable upside, analysts clearly believe Ooma is more favorable than Five9.

Risk & Volatility

Five9 has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Ooma has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Valuation and Earnings

This table compares Five9 and Ooma’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Five9 $200.23 million 11.89 -$8.96 million ($0.17) -240.12
Ooma $114.49 million 2.62 -$13.12 million ($0.69) -22.16

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

Profitability

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

Net Margins Return on Equity Return on Assets
Five9 -1.04% -3.56% -1.30%
Ooma -11.35% -35.06% -17.15%

Insider and Institutional Ownership

96.3% of Five9 shares are held by institutional investors. Comparatively, 74.5% of Ooma shares are held by institutional investors. 5.1% of Five9 shares are held by company insiders. Comparatively, 10.5% of Ooma shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Five9 beats Ooma on 9 of the 14 factors compared between the two stocks.

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.

Ooma Company Profile

Ooma, Inc. provides communications solutions and other connected services to small business, home, and mobile users in the United States and Canadian markets. The company's Ooma Office, a multi-user communications system comprise an on-premise appliance and Ooma Linx end-point device that wirelessly connects regular desktop telephones and fax machines to the user's high-speed Internet connection; and Ooma Office Mobile HD app, which allows users to make, receive, and transfer phone calls. Its Ooma Telo, a home communications solution includes Ooma Premier Service, a suite of advanced calling features that have been designed to enhance the capabilities of Ooma Telo on a monthly or annual subscription basis; and Ooma Mobile HD app, which allows users to make and receive phone calls and access Ooma features and settings with iOS or Android device over a Wi-Fi or cellular data connection. In addition, the company offers Ooma Telo Air, a wireless device that connects to the Internet using the home's Wi-Fi network and can be paired with mobile phones to answer incoming mobile calls from phone in the home; Ooma handset, a Cordless handset; Wireless + bluetooth adapter, which allows users to install the Ooma Telo device anywhere in the home within range of their wireless network; and Safety phone, a wireless hands-free speakerphone that can be worn as a pendant. Further, it provides Ooma Home, a do-it-yourself home security solution; and Talkatone, a mobile app. The company offers its products through direct sales, retailers, and online, as well as through distributors and reseller partnership channels. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.

Receive News & Ratings for Five9 Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Five9 and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply