Nikon 1 V2 has a 14.0MP 1-inch (13.2 x 8.8 mm ) sized CMOS sensor and features Expeed 3A processor. On the other hand, Panasonic S5 has a 24.0MP Full frame (35.6 x 23.8 mm ) sized CMOS sensor and features Venus Engine processor.
Panasonic S5's sensor provides 10MP more than Nikon 1 V2's sensor, which gives a significant advantage in real life. You can print your images larger or crop more freely.
On the other hand, please keep in mind that Max sensor resolution is not the only determinant of resolving power. Factors such as the optical elements, low pass filter, pixel size and sensor technology also affects the final resolution of the captured image.
One other difference between these two cameras that is worth mentioning is that Panasonic S5's sensor doesn't have an anti-alias (Low-Pass) filter. Removing anti-alias filter increases the sharpness and level of detail but at the same time, it increases the chance of moire occurring in certain scenes.
Below you can see the 1 V2 and S5 sensor size comparison.
As seen above, Panasonic S5 has a 7.3x Larger sensor area than Nikon 1 V2. Larger sensors give photographer more control on the depth of field and blurry background compared to smaller sensor when shot in same focal length and aperture.