Appian Corporation (APPN) vs Five9, Inc. (FIVN)

Appian Corporation and Five9, Inc. are both Software Infrastructure companies. Appian Corporation and Five9, Inc. are of similar size ($2.7B and $2.7B). Appian Corporation has negative trailing earnings, so its P/E is not meaningful; Five9, Inc. trades at 47.1×. Appian Corporation grew revenue faster over the last twelve months: 20.9% against 8.87%. Five9, Inc. has the higher net margin (4.94% vs −1.34%) and the higher return on invested capital (4.04% vs 0.00%). Across the 19 metrics below, Five9, Inc. leads on 15 and Appian Corporation on 4.

Valuation

Metric APPN FIVN Software Infrastructure median
P/E n/m 47.07 28.02
P/S 3.30 2.24 3.07
P/B n/m 3.44 3.36
Price to free cash flow 34.20 15.85 17.12
EV/EBITDA 132.94 13.19 14.91
EV/Sales 3.39 2.67 3.03
Earnings yield (0.39%) 2.12% 0.13%
Free cash flow yield 2.92% 6.31% 1.15%

Profitability

Metric APPN FIVN Software Infrastructure median
Gross margin 72.40% 54.91% 61.23%
Operating margin 1.28% 4.68% 0.00%
Net margin (1.34%) 4.94% 0.00%
Free cash flow margin 9.65% 14.14% 1.67%
Return on equity 13.37% 7.92% 0.59%
Return on assets (1.81%) 3.36% 0.00%
Return on invested capital 0.00% 4.04% 0.00%

Growth

Metric APPN FIVN Software Infrastructure median
Revenue growth (TTM) 20.90% 8.87% 13.41%
EPS growth (last fiscal year) 101.59% 364.71% —
Revenue growth, 5-year CAGR 19.00% 21.45% 15.81%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric APPN FIVN Software Infrastructure median
Debt to equity (2.24) 0.94 0.06
Current ratio 1.00 4.15 1.55
Net debt to EBITDA 4.91 0.22 0.08

Dividend

Metric APPN FIVN Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric APPN FIVN Software Infrastructure median
Market cap 2.69b 2.74b 835.96m

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