Head-To-Head Comparison: YuMe (YUME) and Five9 (FIVN)

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

Dividends

YuMe pays an annual dividend of $0.12 per share and has a dividend yield of 2.6%. Five9 does not pay a dividend. YuMe pays out 50.0% of its earnings in the form of a dividend.

Institutional and Insider Ownership

48.0% of YuMe shares are owned by institutional investors. Comparatively, 93.5% of Five9 shares are owned by institutional investors. 29.3% of YuMe shares are owned by insiders. Comparatively, 9.1% of Five9 shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares YuMe and Five9’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
YuMe $160.41 million 1.01 -$7.72 million $0.24 19.33
Five9 $162.09 million 8.17 -$11.86 million ($0.15) -158.73

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

Volatility and Risk

YuMe has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Five9 has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
YuMe 0 0 0 0 N/A
Five9 0 2 5 0 2.71

Five9 has a consensus price target of $26.29, indicating a potential upside of 10.40%. Given Five9’s higher possible upside, analysts plainly believe Five9 is more favorable than YuMe.

Profitability

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

Net Margins Return on Equity Return on Assets
YuMe 5.25% 10.01% 6.37%
Five9 -4.19% -34.14% -9.94%

Summary

YuMe beats Five9 on 9 of the 15 factors compared between the two stocks.

About YuMe

YuMe, Inc. (YuMe) is an independent provider of multi-screen video advertising technology, connecting brand advertisers, digital media property owners and consumers of video content across a range of Internet-connected devices. The Company operating segments include Domestic and International. The Company offers advertising customers end-to-end marketing solutions by combining data-driven technologies with deep insight into audience behavior. The Company also offers demand-side platform (DSP), called YuMe for Advertisers, to find relevant audiences and deliver targeted advertising, and a supply-side platform (SSP), called YuMe for Publishers (YFP 5.0), which helps aggregate audiences, define audience characteristics and offer monetization opportunities for digital media property owners. Its technologies serve the specific needs of brand advertisers and enable them to find and target brand-receptive audiences across a range of Internet connected devices and digital media properties.

About Five9

Five9 Inc. (Five9) is a provider of cloud software for contact centers. The Company’s purpose-built Virtual Contact Center (VCC) cloud platform delivers a suite of applications that enable the breadth of contact center-related customer service, sales and marketing functions. The Company’s solution, which consists of its VCC cloud platform and applications, allows simultaneous management and optimization of customer interactions across voice, chat, e-mail, Web, social media and mobile channels, either directly or through its application programming interfaces (APIs). The Company’s VCC cloud platform matches each customer interaction with an appropriate agent resource and delivers relevant customer data to the agent in real-time through integrations with adjacent enterprise applications, such as customer relationship management (CRM) software, to optimize the customer experience and agent productivity.

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