Head-To-Head Analysis: Applied Digital (NASDAQ:APLD) & Five9 (NASDAQ:FIVN)

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Five9 and Applied Digital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five9	0	2	13	0	2.87
Applied Digital	0	0	5	0	3.00

Five9 presently has a consensus price target of $82.71, indicating a potential upside of 89.93%. Applied Digital has a consensus price target of $8.40, indicating a potential upside of 29.23%. Given Five9’s higher probable upside, analysts clearly believe Five9 is more favorable than Applied Digital.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Five9	$910.49 million	3.53	-$81.76 million	($0.85)	-51.23
Applied Digital	$55.39 million	16.10	-$44.65 million	($0.79)	-8.23

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

Risk and Volatility

Five9 has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Applied Digital has a beta of 4.56, suggesting that its stock price is 356% more volatile than the S&P 500.

Institutional and Insider Ownership

96.6% of Five9 shares are owned by institutional investors. Comparatively, 65.7% of Applied Digital shares are owned by institutional investors. 1.8% of Five9 shares are owned by insiders. Comparatively, 20.5% of Applied Digital shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Five9	-6.56%	-9.09%	-2.88%
Applied Digital	-61.84%	-75.46%	-20.50%

Summary

Five9 beats Applied Digital on 7 of the 13 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 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 Applied Digital

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.