Comparing DST Systems (DST) and Five9 (NASDAQ:FIVN)

DST Systems (NYSE:DST) and Five9 (NASDAQ:FIVN) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Institutional & Insider Ownership

85.7% of DST Systems shares are owned by institutional investors. Comparatively, 97.8% of Five9 shares are owned by institutional investors. 1.8% of DST Systems shares are owned by company insiders. Comparatively, 5.1% of Five9 shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

DST Systems pays an annual dividend of $0.72 per share. Five9 does not pay a dividend. DST Systems has increased its dividend for 2 consecutive years.

Profitability

This table compares DST Systems and Five9’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DST Systems N/A N/A N/A
Five9 -1.90% 0.88% 0.32%

Analyst Recommendations

This is a summary of recent recommendations for DST Systems and Five9, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DST Systems 0 3 0 0 2.00
Five9 1 5 6 0 2.42

DST Systems currently has a consensus price target of $72.00, indicating a potential upside of ∞. Five9 has a consensus price target of $40.18, indicating a potential downside of 5.90%. Given DST Systems’ higher possible upside, research analysts plainly believe DST Systems is more favorable than Five9.

Valuation & Earnings

This table compares DST Systems and Five9’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DST Systems N/A N/A N/A N/A N/A
Five9 $200.23 million 12.53 -$8.96 million ($0.17) -251.18

DST Systems has higher earnings, but lower revenue than Five9.

Summary

Five9 beats DST Systems on 7 of the 10 factors compared between the two stocks.

DST Systems Company Profile

DST Systems, Inc. provides technology-based information processing and servicing solutions in the United States, the United Kingdom, Canada, Australia, and internationally. It operates through Domestic Financial Services, International Financial Services, and Healthcare Services segments. The Domestic Financial Services segment provides investor, investment, advisor/intermediary, and asset distribution services to companies in the financial services industry to support direct and intermediary sales of mutual funds, alternative investments, securities brokerage accounts, and retirement plans. Its services include transaction processing; account opening and maintenance; reconciliation of trades, positions, and cash; corporate actions; regulatory reporting and compliance functions; and tax reporting. The International Financial Services segment offers investor and policyholder administration and technology services on a remote processing and business process outsourcing basis to mutual fund managers, insurers, and platform providers, as well as provides solutions related to participant accounting and recordkeeping for clients in the wealth management and retirement savings industries/markets. Its Healthcare Services segment offers software applications to provide healthcare organizations with pharmacy, healthcare administration, and health outcomes optimization solutions for information processing, quality of care, cost management, and payment integrity needs; and healthcare solutions, including claims adjudication, benefit management, care management, business intelligence, and other ancillary services. The company was founded in 1968 and is headquartered in Kansas City, Missouri.

Five9 Company Profile

Five9, Inc., together with its subsidiaries, provides cloud software for contact centers in the United States and internationally. It offers 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; and acts as a hub for omnichannel engagement between the clients and their customers, which enables them to manage the end-to-end customer experience in a single unified architecture. The company's solution enables its clients to manage these customer interactions across various channels, including voice, chat, email, Web, social media, and mobile, as well as connects them to an appropriate agent. It also provides a set of management applications, including workforce management, reporting, quality management, and supervisor tools. The company serves customers in various industries, including banking and financial services, business process outsourcers, consumer, healthcare, and technology. It has a strategic partnership with Fuze. Five9, Inc. was founded in 2001 and is headquartered in San Ramon, California.

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