Seek Returns logo

APG vs. PAYX: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at APG and PAYX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

PAYX’s market capitalization of 52.99 billion USD is significantly greater than APG’s 9.50 billion USD, highlighting its more substantial market valuation.

APG’s beta of 1.58 points to significantly higher volatility compared to PAYX (beta: 0.91), suggesting APG has greater potential for both gains and losses relative to market movements.

SymbolAPGPAYX
Company NameAPi Group CorporationPaychex, Inc.
CountryUSUS
SectorIndustrialsIndustrials
IndustryEngineering & ConstructionStaffing & Employment Services
CEORussell A. BeckerJohn B. Gibson Jr.
Price34.33 USD147.13 USD
Market Cap9.50 billion USD52.99 billion USD
Beta1.580.91
ExchangeNYSENASDAQ
IPO DateApril 29, 2020August 26, 1983
ADRNoNo

Historical Performance

This chart compares the performance of APG and PAYX by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

APG vs. PAYX: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

APG

8.18%

Engineering & Construction Industry

Max
39.77%
Q3
28.08%
Median
13.64%
Q1
7.13%
Min
-14.48%

APG’s Return on Equity of 8.18% is on par with the norm for the Engineering & Construction industry, indicating its profitability relative to shareholder equity is typical for the sector.

PAYX

41.38%

Staffing & Employment Services Industry

Max
76.78%
Q3
46.63%
Median
19.55%
Q1
6.99%
Min
-1.64%

PAYX’s Return on Equity of 41.38% is on par with the norm for the Staffing & Employment Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

APG vs. PAYX: A comparison of their ROE against their respective Engineering & Construction and Staffing & Employment Services industry benchmarks.

Return on Invested Capital

APG

5.74%

Engineering & Construction Industry

Max
22.01%
Q3
12.65%
Median
8.09%
Q1
4.79%
Min
-2.53%

APG’s Return on Invested Capital of 5.74% is in line with the norm for the Engineering & Construction industry, reflecting a standard level of efficiency in generating profits from its capital base.

PAYX

16.77%

Staffing & Employment Services Industry

Max
23.22%
Q3
18.16%
Median
9.93%
Q1
4.57%
Min
-1.94%

PAYX’s Return on Invested Capital of 16.77% is in line with the norm for the Staffing & Employment Services industry, reflecting a standard level of efficiency in generating profits from its capital base.

APG vs. PAYX: A comparison of their ROIC against their respective Engineering & Construction and Staffing & Employment Services industry benchmarks.

Net Profit Margin

APG

3.36%

Engineering & Construction Industry

Max
11.23%
Q3
6.47%
Median
3.96%
Q1
2.79%
Min
-2.45%

APG’s Net Profit Margin of 3.36% is aligned with the median group of its peers in the Engineering & Construction industry. This indicates its ability to convert revenue into profit is typical for the sector.

PAYX

29.74%

Staffing & Employment Services Industry

Max
30.46%
Q3
17.07%
Median
3.53%
Q1
0.98%
Min
-4.15%

A Net Profit Margin of 29.74% places PAYX in the upper quartile for the Staffing & Employment Services industry, signifying strong profitability and more effective cost management than most of its peers.

APG vs. PAYX: A comparison of their Net Profit Margin against their respective Engineering & Construction and Staffing & Employment Services industry benchmarks.

Operating Profit Margin

APG

6.66%

Engineering & Construction Industry

Max
13.74%
Q3
8.50%
Median
6.20%
Q1
4.58%
Min
0.34%

APG’s Operating Profit Margin of 6.66% is around the midpoint for the Engineering & Construction industry, indicating that its efficiency in managing core business operations is typical for the sector.

PAYX

39.62%

Staffing & Employment Services Industry

Max
19.92%
Q3
12.35%
Median
4.95%
Q1
2.59%
Min
-2.06%

PAYX’s Operating Profit Margin of 39.62% is exceptionally high, placing it well above the typical range for the Staffing & Employment Services industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

APG vs. PAYX: A comparison of their Operating Margin against their respective Engineering & Construction and Staffing & Employment Services industry benchmarks.

Profitability at a Glance

SymbolAPGPAYX
Return on Equity (TTM)8.18%41.38%
Return on Assets (TTM)2.96%10.01%
Return on Invested Capital (TTM)5.74%16.77%
Net Profit Margin (TTM)3.36%29.74%
Operating Profit Margin (TTM)6.66%39.62%
Gross Profit Margin (TTM)30.45%72.35%

Financial Strength

Current Ratio

APG

1.47

Engineering & Construction Industry

Max
2.02
Q3
1.66
Median
1.38
Q1
1.24
Min
0.94

APG’s Current Ratio of 1.47 aligns with the median group of the Engineering & Construction industry, indicating that its short-term liquidity is in line with its sector peers.

PAYX

1.28

Staffing & Employment Services Industry

Max
2.06
Q3
2.01
Median
1.65
Q1
1.15
Min
1.02

PAYX’s Current Ratio of 1.28 aligns with the median group of the Staffing & Employment Services industry, indicating that its short-term liquidity is in line with its sector peers.

APG vs. PAYX: A comparison of their Current Ratio against their respective Engineering & Construction and Staffing & Employment Services industry benchmarks.

Debt-to-Equity Ratio

APG

1.02

Engineering & Construction Industry

Max
1.76
Q3
0.91
Median
0.67
Q1
0.28
Min
0.01

APG’s leverage is in the upper quartile of the Engineering & Construction industry, with a Debt-to-Equity Ratio of 1.02. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

PAYX

0.11

Staffing & Employment Services Industry

Max
0.73
Q3
0.70
Median
0.22
Q1
0.11
Min
0.02

PAYX’s Debt-to-Equity Ratio of 0.11 is typical for the Staffing & Employment Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

APG vs. PAYX: A comparison of their D/E Ratio against their respective Engineering & Construction and Staffing & Employment Services industry benchmarks.

Interest Coverage Ratio

APG

3.17

Engineering & Construction Industry

Max
20.20
Q3
11.91
Median
6.46
Q1
3.18
Min
-2.69

In the lower quartile for the Engineering & Construction industry, APG’s Interest Coverage Ratio of 3.17 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

PAYX

-100.35

Staffing & Employment Services Industry

Max
7.90
Q3
7.90
Median
2.91
Q1
-0.32
Min
-1.17

PAYX has a negative Interest Coverage Ratio of -100.35. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

APG vs. PAYX: A comparison of their Interest Coverage against their respective Engineering & Construction and Staffing & Employment Services industry benchmarks.

Financial Strength at a Glance

SymbolAPGPAYX
Current Ratio (TTM)1.471.28
Quick Ratio (TTM)1.381.28
Debt-to-Equity Ratio (TTM)1.020.11
Debt-to-Asset Ratio (TTM)0.380.03
Net Debt-to-EBITDA Ratio (TTM)3.30-0.48
Interest Coverage Ratio (TTM)3.17-100.35

Growth

The following charts compare key year-over-year (YoY) growth metrics for APG and PAYX. These metrics are based on the companies’ annual financial reports.

Revenue Growth

APG vs. PAYX: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

APG vs. PAYX: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

APG vs. PAYX: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

APG

0.00%

Engineering & Construction Industry

Max
1.31%
Q3
0.40%
Median
0.00%
Q1
0.00%
Min
0.00%

APG currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

PAYX

2.73%

Staffing & Employment Services Industry

Max
5.58%
Q3
3.50%
Median
2.08%
Q1
0.83%
Min
0.00%

PAYX’s Dividend Yield of 2.73% is consistent with its peers in the Staffing & Employment Services industry, providing a dividend return that is standard for its sector.

APG vs. PAYX: A comparison of their Dividend Yield against their respective Engineering & Construction and Staffing & Employment Services industry benchmarks.

Dividend Payout Ratio

APG

0.00%

Engineering & Construction Industry

Max
32.30%
Q3
7.09%
Median
0.00%
Q1
0.00%
Min
0.00%

APG has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

PAYX

87.40%

Staffing & Employment Services Industry

Max
161.25%
Q3
109.23%
Median
58.73%
Q1
15.69%
Min
0.00%

PAYX’s Dividend Payout Ratio of 87.40% is within the typical range for the Staffing & Employment Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

APG vs. PAYX: A comparison of their Payout Ratio against their respective Engineering & Construction and Staffing & Employment Services industry benchmarks.

Dividend at a Glance

SymbolAPGPAYX
Dividend Yield (TTM)0.00%2.73%
Dividend Payout Ratio (TTM)0.00%87.40%

Valuation

Price-to-Earnings Ratio

APG

39.62

Engineering & Construction Industry

Max
95.41
Q3
56.70
Median
32.28
Q1
22.94
Min
4.72

APG’s P/E Ratio of 39.62 is within the middle range for the Engineering & Construction industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

PAYX

31.99

Staffing & Employment Services Industry

Max
35.74
Q3
30.98
Median
20.51
Q1
15.65
Min
7.85

A P/E Ratio of 31.99 places PAYX in the upper quartile for the Staffing & Employment Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

APG vs. PAYX: A comparison of their P/E Ratio against their respective Engineering & Construction and Staffing & Employment Services industry benchmarks.

Forward P/E to Growth Ratio

APG

3.35

Engineering & Construction Industry

Max
4.99
Q3
3.64
Median
2.51
Q1
1.64
Min
0.03

The Forward PEG Ratio is often not a primary valuation metric in the Engineering & Construction industry.

PAYX

3.98

Staffing & Employment Services Industry

Max
3.23
Q3
1.89
Median
1.18
Q1
1.00
Min
0.39

PAYX’s Forward PEG Ratio of 3.98 is exceptionally high for the Staffing & Employment Services industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.

APG vs. PAYX: A comparison of their Forward PEG Ratio against their respective Engineering & Construction and Staffing & Employment Services industry benchmarks.

Price-to-Sales Ratio

APG

1.33

Engineering & Construction Industry

Max
3.34
Q3
2.05
Median
1.50
Q1
0.83
Min
0.44

APG’s P/S Ratio of 1.33 aligns with the market consensus for the Engineering & Construction industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

PAYX

9.51

Staffing & Employment Services Industry

Max
3.70
Q3
2.09
Median
0.86
Q1
0.59
Min
0.09

With a P/S Ratio of 9.51, PAYX trades at a valuation that eclipses even the highest in the Staffing & Employment Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

APG vs. PAYX: A comparison of their P/S Ratio against their respective Engineering & Construction and Staffing & Employment Services industry benchmarks.

Price-to-Book Ratio

APG

3.19

Engineering & Construction Industry

Max
10.70
Q3
7.33
Median
4.69
Q1
2.53
Min
0.79

APG’s P/B Ratio of 3.19 is within the conventional range for the Engineering & Construction industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

PAYX

12.84

Staffing & Employment Services Industry

Max
21.09
Q3
12.56
Median
3.17
Q1
1.96
Min
0.33

The P/B Ratio is often not a primary valuation metric for the Staffing & Employment Services industry.

APG vs. PAYX: A comparison of their P/B Ratio against their respective Engineering & Construction and Staffing & Employment Services industry benchmarks.

Valuation at a Glance

SymbolAPGPAYX
Price-to-Earnings Ratio (P/E, TTM)39.6231.99
Forward PEG Ratio (TTM)3.353.98
Price-to-Sales Ratio (P/S, TTM)1.339.51
Price-to-Book Ratio (P/B, TTM)3.1912.84
Price-to-Free Cash Flow Ratio (P/FCF, TTM)15.8129.93
EV-to-EBITDA (TTM)15.4721.75
EV-to-Sales (TTM)1.699.30