Five9 vs RingCentral Which Is More Profitable?

Five9 and RingCentral are both cloud communication companies that have experienced significant growth in recent years. Five9 specializes in providing cloud-based call center software and solutions, while RingCentral offers a comprehensive suite of cloud-based communication and collaboration tools. Both companies have seen their stocks perform well in the market, with strong revenue growth and positive outlooks for future success. Investors looking to capitalize on the growing demand for cloud communication services may want to closely monitor the performance of Five9 and RingCentral stocks.

Five9 or RingCentral?

When comparing Five9 and RingCentral, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Five9 and RingCentral.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Five9 has a dividend yield of -%, while RingCentral has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Five9 reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, RingCentral reports a 5-year dividend growth of 0.00% year and a payout ratio of -29.56%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Five9 P/E ratio at -86.60 and RingCentral's P/E ratio at -38.34. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Five9 P/B ratio is 5.62 while RingCentral's P/B ratio is -10.90.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Five9 has seen a 5-year revenue growth of 1.85%, while RingCentral's is 1.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Five9's ROE at -6.95% and RingCentral's ROE at 20.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $41.76 for Five9 and $38.85 for RingCentral. Over the past year, Five9's prices ranged from $26.60 to $85.00, with a yearly change of 219.55%. RingCentral's prices fluctuated between $26.98 and $41.03, with a yearly change of 52.08%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.