NET vs. PAYC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at NET and PAYC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | NET | PAYC |
|---|---|---|
| Company Name | Cloudflare, Inc. | Paycom Software, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Industrials |
| GICS Industry | IT Services | Professional Services |
| Market Capitalization | 75.51 billion USD | 11.36 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | September 13, 2019 | April 15, 2014 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of NET 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 | NET | PAYC |
|---|---|---|
| 5-Day Price Return | -0.87% | -7.48% |
| 13-Week Price Return | 13.28% | -13.39% |
| 26-Week Price Return | 92.27% | -7.61% |
| 52-Week Price Return | 173.09% | 21.07% |
| Month-to-Date Return | 0.97% | -3.02% |
| Year-to-Date Return | 101.22% | -1.52% |
| 10-Day Avg. Volume | 2.23M | 0.83M |
| 3-Month Avg. Volume | 2.89M | 0.65M |
| 3-Month Volatility | 36.06% | 30.38% |
| Beta | 1.94 | 0.83 |
Profitability
Return on Equity (TTM)
NET
-10.00%
IT Services Industry
- Max
- 32.78%
- Q3
- 19.28%
- Median
- 13.86%
- Q1
- 5.50%
- Min
- -10.00%
NET has a negative Return on Equity of -10.00%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
PAYC
25.35%
Professional Services Industry
- Max
- 68.01%
- Q3
- 35.32%
- Median
- 21.92%
- Q1
- 11.67%
- Min
- -20.25%
PAYC’s Return on Equity of 25.35% 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)
NET
-6.22%
IT Services Industry
- Max
- 19.71%
- Q3
- 11.01%
- Median
- 6.66%
- Q1
- 2.96%
- Min
- -6.22%
NET has a negative Net Profit Margin of -6.22%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
PAYC
21.21%
Professional Services Industry
- Max
- 31.75%
- Q3
- 15.50%
- Median
- 8.95%
- Q1
- 4.51%
- Min
- 0.35%
A Net Profit Margin of 21.21% 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)
NET
-9.89%
IT Services Industry
- Max
- 22.44%
- Q3
- 14.90%
- Median
- 8.82%
- Q1
- 4.91%
- Min
- -9.89%
NET has a negative Operating Profit Margin of -9.89%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
PAYC
28.10%
Professional Services Industry
- Max
- 30.62%
- Q3
- 19.06%
- Median
- 13.60%
- Q1
- 8.60%
- Min
- -2.18%
An Operating Profit Margin of 28.10% 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 | NET | PAYC |
|---|---|---|
| Return on Equity (TTM) | -10.00% | 25.35% |
| Return on Assets (TTM) | -2.99% | 9.26% |
| Net Profit Margin (TTM) | -6.22% | 21.21% |
| Operating Profit Margin (TTM) | -9.89% | 28.10% |
| Gross Profit Margin (TTM) | 76.14% | 82.44% |
Financial Strength
Current Ratio (MRQ)
NET
5.14
IT Services Industry
- Max
- 3.17
- Q3
- 2.00
- Median
- 1.47
- Q1
- 1.05
- Min
- 0.52
NET’s Current Ratio of 5.14 is exceptionally high, placing it well outside the typical range for the IT Services industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
PAYC
1.30
Professional Services Industry
- Max
- 2.28
- Q3
- 1.75
- Median
- 1.34
- Q1
- 1.10
- Min
- 0.47
PAYC’s Current Ratio of 1.30 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)
NET
2.63
IT Services Industry
- Max
- 3.11
- Q3
- 1.55
- Median
- 0.55
- Q1
- 0.17
- Min
- 0.00
NET’s leverage is in the upper quartile of the IT Services industry, with a Debt-to-Equity Ratio of 2.63. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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)
NET
-4.24
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 0.77
- Min
- -28.15
NET has a negative Interest Coverage Ratio of -4.24. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
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 | NET | PAYC |
|---|---|---|
| Current Ratio (MRQ) | 5.14 | 1.30 |
| Quick Ratio (MRQ) | 5.01 | 1.27 |
| Debt-to-Equity Ratio (MRQ) | 2.63 | 0.00 |
| Interest Coverage Ratio (TTM) | -4.24 | 191.88 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
NET
0.00%
IT Services Industry
- Max
- 2.79%
- Q3
- 1.76%
- Median
- 0.58%
- Q1
- 0.00%
- Min
- 0.00%
NET 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.
PAYC
0.73%
Professional Services Industry
- Max
- 4.83%
- Q3
- 2.44%
- Median
- 1.52%
- Q1
- 0.52%
- Min
- 0.00%
PAYC’s Dividend Yield of 0.73% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
NET
0.00%
IT Services Industry
- Max
- 107.85%
- Q3
- 52.62%
- Median
- 22.53%
- Q1
- 0.00%
- Min
- 0.00%
NET 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.
PAYC
20.52%
Professional Services Industry
- Max
- 128.51%
- Q3
- 69.03%
- Median
- 47.00%
- Q1
- 18.05%
- Min
- 0.00%
PAYC’s Dividend Payout Ratio of 20.52% 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 | NET | PAYC |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.73% |
| Dividend Payout Ratio (TTM) | 0.00% | 20.52% |
Valuation
Price-to-Earnings Ratio (TTM)
NET
--
IT Services Industry
- Max
- 56.41
- Q3
- 33.17
- Median
- 23.17
- Q1
- 16.18
- Min
- 6.62
P/E Ratio data for NET is currently unavailable.
PAYC
28.03
Professional Services Industry
- Max
- 52.60
- Q3
- 33.83
- Median
- 24.95
- Q1
- 17.59
- Min
- 7.96
PAYC’s P/E Ratio of 28.03 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)
NET
40.18
IT Services Industry
- Max
- 5.99
- Q3
- 4.26
- Median
- 1.93
- Q1
- 0.97
- Min
- 0.12
With a P/S Ratio of 40.18, NET trades at a valuation that eclipses even the highest in the IT Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
PAYC
5.95
Professional Services Industry
- Max
- 8.27
- Q3
- 4.40
- Median
- 2.09
- Q1
- 0.99
- Min
- 0.17
PAYC’s P/S Ratio of 5.95 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)
NET
54.75
IT Services Industry
- Max
- 12.34
- Q3
- 7.54
- Median
- 3.84
- Q1
- 2.52
- Min
- 0.88
At 54.75, NET’s P/B Ratio is at an extreme premium to the IT Services 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.
PAYC
7.19
Professional Services Industry
- Max
- 18.75
- Q3
- 9.53
- Median
- 5.88
- Q1
- 2.95
- Min
- 0.59
PAYC’s P/B Ratio of 7.19 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 | NET | PAYC |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | -- | 28.03 |
| Price-to-Sales Ratio (TTM) | 40.18 | 5.95 |
| Price-to-Book Ratio (MRQ) | 54.75 | 7.19 |
| Price-to-Free Cash Flow Ratio (TTM) | 421.88 | 32.85 |