AXON vs. PAYX: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AXON and PAYX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AXON’s market capitalization stands at 61.93 billion USD, while PAYX’s is 52.99 billion USD, indicating their market valuations are broadly comparable.
With betas of 1.28 for AXON and 0.91 for PAYX, both stocks show similar sensitivity to overall market movements.
| Symbol | AXON | PAYX |
|---|---|---|
| Company Name | Axon Enterprise, Inc. | Paychex, Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Aerospace & Defense | Staffing & Employment Services |
| CEO | Patrick W. Smith | John B. Gibson Jr. |
| Price | 795.48 USD | 147.13 USD |
| Market Cap | 61.93 billion USD | 52.99 billion USD |
| Beta | 1.28 | 0.91 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | June 19, 2001 | August 26, 1983 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AXON 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.
Profitability
Return on Equity
AXON
14.86%
Aerospace & Defense Industry
- Max
- 42.57%
- Q3
- 16.67%
- Median
- 8.39%
- Q1
- -0.77%
- Min
- -23.36%
AXON’s Return on Equity of 14.86% is on par with the norm for the Aerospace & Defense 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.
Return on Invested Capital
AXON
0.68%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.86%
- Median
- 5.47%
- Q1
- -5.60%
- Min
- -22.46%
AXON’s Return on Invested Capital of 0.68% is in line with the norm for the Aerospace & Defense 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.
Net Profit Margin
AXON
14.86%
Aerospace & Defense Industry
- Max
- 22.67%
- Q3
- 8.04%
- Median
- 4.95%
- Q1
- -5.07%
- Min
- -16.58%
A Net Profit Margin of 14.86% places AXON in the upper quartile for the Aerospace & Defense industry, signifying strong profitability and more effective cost management than most of its peers.
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.
Operating Profit Margin
AXON
1.50%
Aerospace & Defense Industry
- Max
- 22.01%
- Q3
- 11.49%
- Median
- 8.96%
- Q1
- 3.77%
- Min
- -4.96%
AXON’s Operating Profit Margin of 1.50% is in the lower quartile for the Aerospace & Defense industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
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.
Profitability at a Glance
| Symbol | AXON | PAYX |
|---|---|---|
| Return on Equity (TTM) | 14.86% | 41.38% |
| Return on Assets (TTM) | 5.44% | 10.01% |
| Return on Invested Capital (TTM) | 0.68% | 16.77% |
| Net Profit Margin (TTM) | 14.86% | 29.74% |
| Operating Profit Margin (TTM) | 1.50% | 39.62% |
| Gross Profit Margin (TTM) | 60.44% | 72.35% |
Financial Strength
Current Ratio
AXON
2.83
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.36
- Median
- 2.16
- Q1
- 1.20
- Min
- 0.41
AXON’s Current Ratio of 2.83 aligns with the median group of the Aerospace & Defense 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.
Debt-to-Equity Ratio
AXON
0.80
Aerospace & Defense Industry
- Max
- 1.20
- Q3
- 0.73
- Median
- 0.51
- Q1
- 0.09
- Min
- 0.00
AXON’s leverage is in the upper quartile of the Aerospace & Defense industry, with a Debt-to-Equity Ratio of 0.80. 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.
Interest Coverage Ratio
AXON
2.53
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.38
- Median
- 2.95
- Q1
- 1.68
- Min
- -6.68
AXON’s Interest Coverage Ratio of 2.53 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.
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.
Financial Strength at a Glance
| Symbol | AXON | PAYX |
|---|---|---|
| Current Ratio (TTM) | 2.83 | 1.28 |
| Quick Ratio (TTM) | 2.62 | 1.28 |
| Debt-to-Equity Ratio (TTM) | 0.80 | 0.11 |
| Debt-to-Asset Ratio (TTM) | 0.34 | 0.03 |
| Net Debt-to-EBITDA Ratio (TTM) | 4.16 | -0.48 |
| Interest Coverage Ratio (TTM) | 2.53 | -100.35 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AXON and PAYX. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AXON
0.00%
Aerospace & Defense Industry
- Max
- 6.00%
- Q3
- 0.66%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AXON 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.
Dividend Payout Ratio
AXON
0.00%
Aerospace & Defense Industry
- Max
- 172.02%
- Q3
- 32.47%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AXON 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.
Dividend at a Glance
| Symbol | AXON | PAYX |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.73% |
| Dividend Payout Ratio (TTM) | 0.00% | 87.40% |
Valuation
Price-to-Earnings Ratio
AXON
184.79
Aerospace & Defense Industry
- Max
- 75.34
- Q3
- 54.40
- Median
- 38.63
- Q1
- 26.10
- Min
- 16.44
At 184.79, AXON’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Aerospace & Defense industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
Forward P/E to Growth Ratio
AXON
8.54
Aerospace & Defense Industry
- Max
- 10.68
- Q3
- 5.36
- Median
- 2.31
- Q1
- 1.47
- Min
- 0.01
A Forward PEG Ratio of 8.54 places AXON in the upper quartile for the Aerospace & Defense industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
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.
Price-to-Sales Ratio
AXON
27.81
Aerospace & Defense Industry
- Max
- 19.34
- Q3
- 9.54
- Median
- 2.71
- Q1
- 1.59
- Min
- 0.35
With a P/S Ratio of 27.81, AXON trades at a valuation that eclipses even the highest in the Aerospace & Defense industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
Price-to-Book Ratio
AXON
23.93
Aerospace & Defense Industry
- Max
- 16.08
- Q3
- 8.12
- Median
- 4.12
- Q1
- 2.69
- Min
- 0.69
At 23.93, AXON’s P/B Ratio is at an extreme premium to the Aerospace & Defense industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
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.
Valuation at a Glance
| Symbol | AXON | PAYX |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 184.79 | 31.99 |
| Forward PEG Ratio (TTM) | 8.54 | 3.98 |
| Price-to-Sales Ratio (P/S, TTM) | 27.81 | 9.51 |
| Price-to-Book Ratio (P/B, TTM) | 23.93 | 12.84 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 170.80 | 29.93 |
| EV-to-EBITDA (TTM) | 274.06 | 21.75 |
| EV-to-Sales (TTM) | 28.23 | 9.30 |