Five9, Inc. (FIVN) vs PagSeguro Digital Ltd. (PAGS)

Five9, Inc. and PagSeguro Digital Ltd. are both Software Infrastructure companies. Five9, Inc. and PagSeguro Digital Ltd. are of similar size ($2.7B and $2.5B). PagSeguro Digital Ltd. trades at the lower P/E: 6.3× against 47.1×. PagSeguro Digital Ltd. grew revenue faster over the last twelve months: 12.3% against 8.87%. PagSeguro Digital Ltd. has the higher net margin (10.5% vs 4.94%) and the higher return on invested capital (32.6% vs 4.04%). Across the 22 metrics below, PagSeguro Digital Ltd. leads on 18 and Five9, Inc. on 4.

Valuation

Metric FIVN PAGS Software Infrastructure median
P/E 47.07 6.33 28.02
P/S 2.24 0.64 3.07
P/B 3.44 0.84 3.36
Price to free cash flow 15.85 3.50 17.12
EV/EBITDA 13.19 1.32 14.91
EV/Sales 2.67 0.65 3.03
Earnings yield 2.12% 15.80% 0.13%
Free cash flow yield 6.31% 28.53% 1.15%

Profitability

Metric FIVN PAGS Software Infrastructure median
Gross margin 54.91% 53.30% 61.23%
Operating margin 4.68% 40.07% 0.00%
Net margin 4.94% 10.47% 0.00%
Free cash flow margin 14.14% 18.36% 1.67%
Return on equity 7.92% 14.69% 0.59%
Return on assets 3.36% 2.96% 0.00%
Return on invested capital 4.04% 32.55% 0.00%

Growth

Metric FIVN PAGS Software Infrastructure median
Revenue growth (TTM) 8.87% 12.27% 13.41%
EPS growth (last fiscal year) 364.71% 12.39% —
Revenue growth, 5-year CAGR 21.45% 22.56% 15.81%
Net income growth, 5-year CAGR 0.00% 8.65% 0.00%

Health

Metric FIVN PAGS Software Infrastructure median
Debt to equity 0.94 0.10 0.06
Current ratio 4.15 1.55 1.55
Net debt to EBITDA 0.22 0.00 0.08

Dividend

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

Size

Metric FIVN PAGS Software Infrastructure median
Market cap 2.74b 2.51b 835.96m

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