Five9, Inc. (FIVN) vs StoneCo Ltd. (STNE)

Five9, Inc. and StoneCo Ltd. are both Software Infrastructure companies. Five9, Inc. and StoneCo Ltd. are of similar size ($2.8B and $2.6B). StoneCo Ltd. trades at the lower P/E: 4.5× against 42.4×. Five9, Inc. grew revenue faster over the last twelve months: 8.87% against 8.71%. StoneCo Ltd. has the higher net margin (24.1% vs 4.94%) and the higher return on invested capital (27.2% vs 4.04%). Across the 22 metrics below, StoneCo Ltd. leads on 17 and Five9, Inc. on 5.

Valuation

Metric FIVN STNE Software Infrastructure median
P/E 42.36 4.46 28.38
P/S 2.02 1.01 2.98
P/B 3.09 1.51 2.93
Price to free cash flow 14.27 3.71 16.28
EV/EBITDA 12.08 2.63 13.92
EV/Sales 2.45 1.48 2.90
Earnings yield 2.36% 22.43% 0.14%
Free cash flow yield 7.01% 26.98% 1.24%

Profitability

Metric FIVN STNE Software Infrastructure median
Gross margin 54.91% 73.59% 61.00%
Operating margin 4.68% 49.68% 0.00%
Net margin 4.94% 24.12% 0.00%
Free cash flow margin 14.14% 27.20% 1.67%
Return on equity 7.92% 33.67% 0.60%
Return on assets 3.36% 6.10% 0.00%
Return on invested capital 4.04% 27.16% 0.00%

Growth

Metric FIVN STNE Software Infrastructure median
Revenue growth (TTM) 8.87% 8.71% 13.41%
EPS growth (last fiscal year) 364.71% 265.22% 27.10%
Revenue growth, 5-year CAGR 21.45% 31.53% 15.57%
Net income growth, 5-year CAGR 0.00% 20.77% 0.00%

Health

Metric FIVN STNE Software Infrastructure median
Debt to equity 0.94 1.80 0.05
Current ratio 4.15 1.26 1.55
Net debt to EBITDA 0.22 1.18 0.08

Dividend

Metric FIVN STNE Software Infrastructure median
Dividend yield — 0.00% 1.20%
Payout ratio — 0.00 0.29

Size

Metric FIVN STNE Software Infrastructure median
Market cap 2.62b 2.77b 752.37m

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