Analyzing Five9 (NASDAQ:FIVN) & Weave Communications (NYSE:WEAV)

Five9 (NASDAQ:FIVN) and Weave Communications (NYSE:WEAV) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five9	1	5	13	0	2.63
Weave Communications	1	1	2	1	2.60

Five9 presently has a consensus price target of $35.19, suggesting a potential upside of 66.45%. Weave Communications has a consensus price target of $11.50, suggesting a potential upside of 64.17%. Given Five9’s stronger consensus rating and higher possible upside, analysts clearly believe Five9 is more favorable than Weave Communications.

Risk & Volatility

Five9 has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Weave Communications has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500.

Insider and Institutional Ownership

96.6% of Five9 shares are owned by institutional investors. Comparatively, 86.8% of Weave Communications shares are owned by institutional investors. 1.6% of Five9 shares are owned by company insiders. Comparatively, 18.4% of Weave Communications shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Five9 and Weave Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Five9	2.77%	10.59%	3.87%
Weave Communications	-14.32%	-42.10%	-15.65%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Five9	$1.04 billion	1.59	-$12.80 million	$0.36	58.72
Weave Communications	$204.31 million	2.68	-$28.35 million	($0.43)	-16.29

Five9 has higher revenue and earnings than Weave Communications. Weave Communications 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 Weave Communications on 11 of the 15 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 Weave Communications

Weave Communications, Inc. provides a customer experience and payments software platform in the United States and Canada. Its platform enables small and medium-sized healthcare businesses to maximize the value of their patient interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Unified Phone Number; Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current patients, provide information at every call, and manages heavy call times; Softphones to make and receive calls from anywhere with an internet connection; Text Messaging to communicate with patients; Missed Call Text to take action in real time upon notification of a missed call; Missed Text Auto-Reply; Team Chat, a group messaging solution that helps practitioners and their staff communicate with each other from their work stations; and Weave Mobile App; It also offers Weave Reviews and Respond Assistant to request, collect, monitor, and respond to reviews; Weave Email Marketing and Email Assistant; Text Connect to interact with their existing and potential patients online directly through their websites; Weave Payments, a payment processing solution; Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation; and Call Intelligence. In addition, the company provides Digital Forms to collect patient information; Insurance Verification that provides patient insurance plan details; and Scheduling to send automatic scheduling reminders through text message. It serves customers in dental, optometry, veterinary, medical, plastic surgery, physical therapy, medical spa, and other medical specialty industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.