HPQ vs. PAYC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at HPQ and PAYC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | HPQ | PAYC |
|---|---|---|
| Company Name | HP Inc. | Paycom Software, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Industrials |
| GICS Industry | Technology Hardware, Storage & Peripherals | Professional Services |
| Market Capitalization | 23.64 billion USD | 9.16 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | January 2, 1962 | April 15, 2014 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of HPQ and PAYC 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.
Historical Performance at a Glance
| Symbol | HPQ | PAYC |
|---|---|---|
| 5-Day Price Return | -2.51% | -8.31% |
| 13-Week Price Return | -0.86% | -24.54% |
| 26-Week Price Return | -2.17% | -27.06% |
| 52-Week Price Return | -32.27% | -26.58% |
| Month-to-Date Return | -8.60% | -10.85% |
| Year-to-Date Return | -22.49% | -18.62% |
| 10-Day Avg. Volume | 10.76M | 0.93M |
| 3-Month Avg. Volume | 9.64M | 0.67M |
| 3-Month Volatility | 34.55% | 36.18% |
| Beta | 1.23 | 0.82 |
Profitability
Return on Equity (TTM)
HPQ
16.85%
Technology Hardware, Storage & Peripherals Industry
- Max
- 56.93%
- Q3
- 27.52%
- Median
- 9.18%
- Q1
- 5.14%
- Min
- -1.04%
HPQ’s Return on Equity of 16.85% is on par with the norm for the Technology Hardware, Storage & Peripherals industry, indicating its profitability relative to shareholder equity is typical for the sector.
PAYC
26.64%
Professional Services Industry
- Max
- 68.01%
- Q3
- 35.32%
- Median
- 21.92%
- Q1
- 11.67%
- Min
- -20.25%
PAYC’s Return on Equity of 26.64% is on par with the norm for the Professional Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
HPQ
4.83%
Technology Hardware, Storage & Peripherals Industry
- Max
- 16.15%
- Q3
- 7.95%
- Median
- 4.80%
- Q1
- 2.20%
- Min
- -0.29%
HPQ’s Net Profit Margin of 4.83% is aligned with the median group of its peers in the Technology Hardware, Storage & Peripherals industry. This indicates its ability to convert revenue into profit is typical for the sector.
PAYC
22.64%
Professional Services Industry
- Max
- 31.75%
- Q3
- 15.50%
- Median
- 8.95%
- Q1
- 4.51%
- Min
- 0.35%
A Net Profit Margin of 22.64% places PAYC in the upper quartile for the Professional Services industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
HPQ
5.85%
Technology Hardware, Storage & Peripherals Industry
- Max
- 20.70%
- Q3
- 10.74%
- Median
- 6.27%
- Q1
- 4.07%
- Min
- 1.97%
HPQ’s Operating Profit Margin of 5.85% is around the midpoint for the Technology Hardware, Storage & Peripherals industry, indicating that its efficiency in managing core business operations is typical for the sector.
PAYC
29.69%
Professional Services Industry
- Max
- 30.62%
- Q3
- 19.06%
- Median
- 13.60%
- Q1
- 8.60%
- Min
- -2.18%
An Operating Profit Margin of 29.69% places PAYC in the upper quartile for the Professional Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | HPQ | PAYC |
|---|---|---|
| Return on Equity (TTM) | 16.85% | 26.64% |
| Return on Assets (TTM) | 6.71% | 9.69% |
| Net Profit Margin (TTM) | 4.83% | 22.64% |
| Operating Profit Margin (TTM) | 5.85% | 29.69% |
| Gross Profit Margin (TTM) | 20.89% | 82.95% |
Financial Strength
Current Ratio (MRQ)
HPQ
0.74
Technology Hardware, Storage & Peripherals Industry
- Max
- 3.37
- Q3
- 2.04
- Median
- 1.41
- Q1
- 0.98
- Min
- 0.11
HPQ’s Current Ratio of 0.74 falls into the lower quartile for the Technology Hardware, Storage & Peripherals industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
PAYC
1.22
Professional Services Industry
- Max
- 2.28
- Q3
- 1.75
- Median
- 1.34
- Q1
- 1.10
- Min
- 0.47
PAYC’s Current Ratio of 1.22 aligns with the median group of the Professional Services industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
HPQ
0.32
Technology Hardware, Storage & Peripherals Industry
- Max
- 1.54
- Q3
- 0.85
- Median
- 0.32
- Q1
- 0.11
- Min
- 0.00
HPQ’s Debt-to-Equity Ratio of 0.32 is typical for the Technology Hardware, Storage & Peripherals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
PAYC
0.00
Professional Services Industry
- Max
- 2.93
- Q3
- 1.45
- Median
- 0.98
- Q1
- 0.45
- Min
- 0.00
Falling into the lower quartile for the Professional Services industry, PAYC’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
HPQ
8.25
Technology Hardware, Storage & Peripherals Industry
- Max
- 143.63
- Q3
- 76.01
- Median
- 19.47
- Q1
- 5.91
- Min
- -23.93
HPQ’s Interest Coverage Ratio of 8.25 is positioned comfortably within the norm for the Technology Hardware, Storage & Peripherals industry, indicating a standard and healthy capacity to cover its interest payments.
PAYC
191.88
Professional Services Industry
- Max
- 39.45
- Q3
- 20.41
- Median
- 11.64
- Q1
- 5.46
- Min
- -1.21
With an Interest Coverage Ratio of 191.88, PAYC demonstrates a superior capacity to service its debt, placing it well above the typical range for the Professional Services industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | HPQ | PAYC |
|---|---|---|
| Current Ratio (MRQ) | 0.74 | 1.22 |
| Quick Ratio (MRQ) | 0.44 | 1.19 |
| Debt-to-Equity Ratio (MRQ) | 0.32 | 0.00 |
| Interest Coverage Ratio (TTM) | 8.25 | 191.88 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
HPQ
4.55%
Technology Hardware, Storage & Peripherals Industry
- Max
- 4.33%
- Q3
- 3.29%
- Median
- 1.76%
- Q1
- 0.00%
- Min
- 0.00%
HPQ’s Dividend Yield of 4.55% is exceptionally high, placing it well above the typical range for the Technology Hardware, Storage & Peripherals industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
PAYC
0.93%
Professional Services Industry
- Max
- 4.83%
- Q3
- 2.44%
- Median
- 1.52%
- Q1
- 0.52%
- Min
- 0.00%
PAYC’s Dividend Yield of 0.93% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
HPQ
40.95%
Technology Hardware, Storage & Peripherals Industry
- Max
- 142.87%
- Q3
- 77.17%
- Median
- 40.90%
- Q1
- 3.87%
- Min
- 0.00%
HPQ’s Dividend Payout Ratio of 40.95% is within the typical range for the Technology Hardware, Storage & Peripherals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
PAYC
18.80%
Professional Services Industry
- Max
- 128.51%
- Q3
- 69.03%
- Median
- 47.00%
- Q1
- 18.05%
- Min
- 0.00%
PAYC’s Dividend Payout Ratio of 18.80% is within the typical range for the Professional Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | HPQ | PAYC |
|---|---|---|
| Dividend Yield (TTM) | 4.55% | 0.93% |
| Dividend Payout Ratio (TTM) | 40.95% | 18.80% |
Valuation
Price-to-Earnings Ratio (TTM)
HPQ
9.00
Technology Hardware, Storage & Peripherals Industry
- Max
- 43.10
- Q3
- 28.67
- Median
- 19.23
- Q1
- 15.53
- Min
- 9.46
HPQ’s P/E Ratio of 9.00 is below the typical range for the Technology Hardware, Storage & Peripherals industry. This may indicate that the stock is potentially undervalued, or it could reflect market concerns about the company’s future prospects.
PAYC
20.13
Professional Services Industry
- Max
- 52.60
- Q3
- 33.83
- Median
- 24.95
- Q1
- 17.59
- Min
- 7.96
PAYC’s P/E Ratio of 20.13 is within the middle range for the Professional Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
HPQ
0.43
Technology Hardware, Storage & Peripherals Industry
- Max
- 5.63
- Q3
- 3.18
- Median
- 1.10
- Q1
- 0.49
- Min
- 0.04
In the lower quartile for the Technology Hardware, Storage & Peripherals industry, HPQ’s P/S Ratio of 0.43 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
PAYC
4.56
Professional Services Industry
- Max
- 8.27
- Q3
- 4.40
- Median
- 2.09
- Q1
- 0.99
- Min
- 0.17
PAYC’s P/S Ratio of 4.56 is in the upper echelon for the Professional Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
HPQ
0.90
Technology Hardware, Storage & Peripherals Industry
- Max
- 13.94
- Q3
- 6.87
- Median
- 1.88
- Q1
- 0.94
- Min
- 0.32
HPQ’s P/B Ratio of 0.90 is in the lower quartile for the Technology Hardware, Storage & Peripherals industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
PAYC
6.85
Professional Services Industry
- Max
- 18.75
- Q3
- 9.53
- Median
- 5.88
- Q1
- 2.95
- Min
- 0.59
PAYC’s P/B Ratio of 6.85 is within the conventional range for the Professional Services 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.
Valuation at a Glance
| Symbol | HPQ | PAYC |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 9.00 | 20.13 |
| Price-to-Sales Ratio (TTM) | 0.43 | 4.56 |
| Price-to-Book Ratio (MRQ) | 0.90 | 6.85 |
| Price-to-Free Cash Flow Ratio (TTM) | 7.95 | 23.39 |