Five9 (NASDAQ:FIVN) and Riskified (NYSE:RSKD) Financial Analysis

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

Analyst Ratings

This is a summary of current ratings and price targets for Five9 and Riskified, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five9	0	8	11	0	2.58
Riskified	3	3	2	0	1.88

Five9 currently has a consensus price target of $35.53, suggesting a potential upside of 10.25%. Riskified has a consensus price target of $7.17, suggesting a potential downside of 12.87%. Given Five9’s stronger consensus rating and higher probable upside, analysts plainly believe Five9 is more favorable than Riskified.

Institutional and Insider Ownership

96.6% of Five9 shares are held by institutional investors. Comparatively, 59.0% of Riskified shares are held by institutional investors. 1.2% of Five9 shares are held by company insiders. Comparatively, 17.4% of Riskified shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Five9	4.94%	12.92%	5.65%
Riskified	-4.23%	-3.93%	-2.79%

Volatility and Risk

Five9 has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Riskified has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Five9	$1.15 billion	2.15	$39.42 million	$0.69	46.71
Riskified	$344.64 million	3.54	-$27.57 million	($0.11)	-74.77

Five9 has higher revenue and earnings than Riskified. Riskified 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 Riskified on 12 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, 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.

About Riskified

Riskified Ltd., together with its subsidiaries, develops and offers an e-commerce risk management platform that allows online merchants to create trusted relationships with consumers in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. It offers Chargeback Guarantee that ensures the legitimacy of merchants' online orders; Policy Protect, a machine learning solution designed to detect and prevent refund and returns policy abuse in real-time; Account Secure, a solution that cross-checks every login attempt; Dispute Resolve, which is used to compile submissions for fraud and non-fraud related chargeback issues; and PSD2 Optimize that helps merchants avoid bank authorization failures and abandoned shopping carts. The company serves direct-to-consumer brands, online-only retailers, omnichannel retailers, online marketplaces, and e-commerce service providers in various industries, such as payments, money transfer and crypto, tickets and travel, electronics, home, and fashion and luxury goods. Riskified Ltd. was incorporated in 2012 and is headquartered in Tel Aviv, Israel.