Comparing Five9 (NASDAQ:FIVN) & Renren (NASDAQ:RENN)

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Five9 and Renren, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Five9 1 6 8 0 2.47
Renren 0 0 0 0 N/A

Five9 currently has a consensus target price of $53.08, suggesting a potential downside of 0.74%. Given Five9’s higher possible upside, equities analysts clearly believe Five9 is more favorable than Renren.

Profitability

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

Net Margins Return on Equity Return on Assets
Five9 -0.56% 8.35% 2.91%
Renren 17.78% -27.86% -12.56%

Volatility and Risk

Five9 has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Renren has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Earnings and Valuation

This table compares Five9 and Renren’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Five9 $257.66 million 12.39 -$220,000.00 $0.15 356.53
Renren $498.20 million 0.14 $72.54 million $1.29 0.78

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

Institutional & Insider Ownership

1.5% of Renren shares are owned by institutional investors. 4.9% of Five9 shares are owned by company insiders. Comparatively, 42.4% of Renren shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Five9 beats Renren on 7 of the 13 factors compared between the two stocks.

About Five9

Five9, Inc., together with its subsidiaries, provides cloud software for contact centers in the United States and internationally. The company 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. Its 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. The company also provides a set of management applications, such as workforce management, reporting, quality management, and supervisor tools. The company serves customers in various industries comprising banking and financial services, business process outsourcers, consumer, healthcare, and technology. Five9, Inc. was founded in 2001 and is headquartered in San Ramon, California.

About Renren

Renren Inc. operates a social networking Internet platform in the People's Republic of China. It operates through two segments, Renren and Auto Group. The company operates Renren.com and Renren Mobile App that enable users to communicate and stay connected with friends, classmates, family members, and co-workers; and woxiu.com, a PC-based social video platform for users to stream their performances live to viewers. The company also sells used automobiles and related products; arranges financing options for customers through its financial services partners; provides credit financing for used automobile dealerships; and sells new cars, as well as provides value-added services, such as warranties, insurance, and after-sale products and services. It offers vehicles at its in-store showrooms; and through Kaixin Auto app, as well as through other online vertical channels, such as Autohome and 58.com. In addition, the company develops Chime, a software as a solution platform that offers lead generation and customer relationship management solutions for real estate professionals; and provides customizable lead capture landing pages that offer multiple home value estimates in the United States. Further, it provides online and mobile services for the trucking industry in the United States. The company was formerly known as Oak Pacific Interactive and changed its name to Renren Inc. in December 2010. Renren Inc. was founded in 2002 and is headquartered in Beijing, the People's Republic of China.

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