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PAYC vs. PAYX: Paycom Software vs. Paychex Stock Comparison

How do Paycom Software (PAYC) and Paychex (PAYX) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Paycom Software (PAYC) and Paychex (PAYX) are both classified in the Human Resource & Employment Services sub-industry within the broader Professional Services industry, placing them in the closest GICS peer bucket.

Company profile comparison for Paycom Software (PAYC) and Paychex (PAYX)
Profile ItemPAYCPAYX
NamePaycom Software, Inc.Paychex Inc.
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCommercial & Professional ServicesCommercial & Professional Services
GICS IndustryProfessional ServicesProfessional Services
GICS Sub-IndustryHuman Resource & Employment ServicesHuman Resource & Employment Services
Market Capitalization10.69 billion USD41.67 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateApril 15, 2014August 26, 1983
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

PAYC
PAYX
GSPC
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Paycom Software (PAYC) vs. Paychex (PAYX), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Paycom Software (PAYC) and Paychex (PAYX). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Paycom Software (PAYC) and Paychex (PAYX). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Paycom Software (PAYC) and Paychex (PAYX)
MetricPAYCPAYX
Total Return (1Y)49.84%7.76%
Total Return (3Y, Annualized)13.71%4.26%
Total Return (5Y, Annualized)-13.38%1.96%

Risk Profile

Drawdown History

PAYC
PAYX
GSPC
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Paycom Software (PAYC) vs. Paychex (PAYX), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Paycom Software (PAYC) and Paychex (PAYX). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Paycom Software (PAYC) and Paychex (PAYX)
MetricPAYCPAYX
Volatility (1Y, Annualized)47.19%30.84%
Beta (5Y)0.750.79
Max Drawdown (5Y)-77.09%-44.95%
Avg. Volume (3M)702.61K2.88M

Risk-Adjusted Performance

Risk-Return Positioning

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PAYC and PAYX are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Paycom Software (PAYC) and Paychex (PAYX)
MetricPAYCPAYX
Sharpe Ratio (1Y)0.970.11
Sortino Ratio (1Y)1.660.16

Profitability

ROE (TTM)

Both Paycom Software (PAYC) at 42.22% and Paychex (PAYX) at 47.06% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

PAYC

Commercial & Professional Services industry group

42.22%

Max
47.06%
PAYC
42.22%
Q3
25.43%
Median
14.11%
Q1
3.92%
Min
-20.15%

PAYX

Commercial & Professional Services industry group

47.06%

PAYX
47.06%
Max
47.06%
Q3
25.43%
Median
14.11%
Q1
3.92%
Min
-20.15%
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Paycom Software (PAYC) vs. Paychex (PAYX): A comparison of their ROE against the Commercial & Professional Services industry group benchmark.

Net Margin (TTM)

Paychex (PAYX) at 27.35% keeps the most of each sales dollar — above its industry’s net margin range — and Paycom Software (PAYC) at 23.28% also retains a top-quartile share.

PAYC

Commercial & Professional Services industry group

23.28%

PAYC
23.28%
Max
23.28%
Q3
11.35%
Median
5.65%
Q1
0.87%
Min
-8.60%

PAYX

Commercial & Professional Services industry group

27.35%

PAYX
27.35%
Max
23.28%
Q3
11.35%
Median
5.65%
Q1
0.87%
Min
-8.60%
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Paycom Software (PAYC) vs. Paychex (PAYX): A comparison of their net margin against the Commercial & Professional Services industry group benchmark.

Operating Margin (TTM)

Both Paycom Software (PAYC) at 38.03% and Paychex (PAYX) at 38.50% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

PAYC

Commercial & Professional Services industry group

38.03%

Max
38.50%
PAYC
38.03%
Q3
18.84%
Median
10.40%
Q1
5.59%
Min
-12.00%

PAYX

Commercial & Professional Services industry group

38.50%

PAYX
38.50%
Max
38.50%
Q3
18.84%
Median
10.40%
Q1
5.59%
Min
-12.00%
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Paycom Software (PAYC) vs. Paychex (PAYX): A comparison of their operating margin against the Commercial & Professional Services industry group benchmark.

Profitability Metrics

Profitability metrics for Paycom Software (PAYC) and Paychex (PAYX)
MetricPAYCPAYX
ROE (TTM)42.22%47.06%
ROA (TTM)8.98%10.19%
Net Margin (TTM)23.28%27.35%
Operating Margin (TTM)38.03%38.50%
Gross Margin (TTM)88.39%74.39%

Growth

Revenue Growth

Paychex (PAYX) at 16.88% sits in the top revenue growth quartile, while Paycom Software (PAYC) at 8.95% is closer to the peer norm — faster top-line expansion for PAYX.

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Paycom Software (PAYC) vs. Paychex (PAYX): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Paycom Software (PAYC) at -9.42% and Paychex (PAYX) at 6.77% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Paycom Software (PAYC) vs. Paychex (PAYX): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Paycom Software (PAYC) and Paychex (PAYX)
MetricPAYCPAYX
Revenue Growth (YoY)8.95%16.88%
Revenue Growth (3Y CAGR)14.27%9.15%
EPS Growth (YoY)-9.42%6.77%
EPS Growth (3Y CAGR)18.63%4.38%

Financial Strength

Current Ratio (MRQ)

Paychex (PAYX) at 1.28 keeps current ratio within its industry’s typical mid-range, while Paycom Software (PAYC) at 1.06 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for PAYC.

PAYC

Commercial & Professional Services industry group

1.06

Max
3.63
Q3
2.14
Median
1.55
Q1
1.09
PAYC
1.06
Min
0.45

PAYX

Commercial & Professional Services industry group

1.28

Max
3.63
Q3
2.14
Median
1.55
PAYX
1.28
Q1
1.09
Min
0.45
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Paycom Software (PAYC) vs. Paychex (PAYX): A comparison of their current ratio against the Commercial & Professional Services industry group benchmark.

Debt / Equity (MRQ)

Both Paycom Software (PAYC) at 1.16 and Paychex (PAYX) at 1.25 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

PAYC

Commercial & Professional Services industry group

1.16

Max
2.37
Q3
1.25
PAYC
1.16
Median
0.88
Q1
0.35
Min
0.00

PAYX

Commercial & Professional Services industry group

1.25

Max
2.37
Q3
1.25
PAYX
1.25
Median
0.88
Q1
0.35
Min
0.00
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Paycom Software (PAYC) vs. Paychex (PAYX): A comparison of their debt-to-equity ratio against the Commercial & Professional Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Paycom Software (PAYC) and Paychex (PAYX)
MetricPAYCPAYX
Current Ratio (MRQ)1.061.28
Debt / Equity (MRQ)1.161.25
Net Debt / EBITDA0.751.20

Dividends

Dividend Yield (TTM)

Paychex (PAYX) at 3.80% delivers top-quartile income for its industry, while Paycom Software (PAYC) at 0.60% pays a more typical yield — both are credible income propositions, PAYX the richer one.

PAYC

Commercial & Professional Services industry group

0.60%

Max
4.33%
Q3
1.80%
Median
0.60%
PAYC
0.60%
Q1
0.00%
Min
0.00%

PAYX

Commercial & Professional Services industry group

3.80%

Max
4.33%
PAYX
3.80%
Q3
1.80%
Median
0.60%
Q1
0.00%
Min
0.00%
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Paycom Software (PAYC) vs. Paychex (PAYX): A comparison of their dividend yield against the Commercial & Professional Services industry group benchmark.

Dividend Payout Ratio (TTM)

Paycom Software (PAYC) at 14.34% pays out a band-typical share of earnings, while Paychex (PAYX) at 90.08% distributes more than its industry norm — less retained, thinner cover.

PAYC

Commercial & Professional Services industry group

14.34%

Max
99.58%
Q3
41.99%
Median
17.27%
PAYC
14.34%
Q1
0.00%
Min
-17.94%

PAYX

Commercial & Professional Services industry group

90.08%

Max
99.58%
PAYX
90.08%
Q3
41.99%
Median
17.27%
Q1
0.00%
Min
-17.94%
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Paycom Software (PAYC) vs. Paychex (PAYX): A comparison of their payout ratio against the Commercial & Professional Services industry group benchmark.

Dividend Metrics

Dividend metrics for Paycom Software (PAYC) and Paychex (PAYX)
MetricPAYCPAYX
Dividend Yield (TTM)0.60%3.80%
Dividend Payout Ratio (TTM)14.34%90.08%

Valuation

P/E Ratio (TTM)

Both Paycom Software (PAYC) at 22.69 and Paychex (PAYX) at 23.23 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

PAYC

Commercial & Professional Services industry group

22.69

Max
49.47
Q3
33.76
Median
24.16
PAYC
22.69
Q1
16.01
Min
1.89

PAYX

Commercial & Professional Services industry group

23.23

Max
49.47
Q3
33.76
Median
24.16
PAYX
23.23
Q1
16.01
Min
1.89
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Paycom Software (PAYC) vs. Paychex (PAYX): A comparison of their P/E ratio against the Commercial & Professional Services industry group benchmark.

P/S Ratio (TTM)

Both Paycom Software (PAYC) at 4.88 and Paychex (PAYX) at 6.31 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

PAYC

Commercial & Professional Services industry group

4.88

Max
7.17
PAYC
4.88
Q3
3.35
Median
1.33
Q1
0.69
Min
0.11

PAYX

Commercial & Professional Services industry group

6.31

Max
7.17
PAYX
6.31
Q3
3.35
Median
1.33
Q1
0.69
Min
0.11
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Paycom Software (PAYC) vs. Paychex (PAYX): A comparison of their P/S ratio against the Commercial & Professional Services industry group benchmark.

P/B Ratio (MRQ)

Both look rich against book: Paychex (PAYX) at 11.25 sits in the upper P/B ratio quartile, and Paycom Software (PAYC) at 14.62 prices even higher, above its industry range.

PAYC

Commercial & Professional Services industry group

14.62

PAYC
14.62
Max
11.25
Q3
6.08
Median
2.92
Q1
1.55
Min
-2.78

PAYX

Commercial & Professional Services industry group

11.25

PAYX
11.25
Max
11.25
Q3
6.08
Median
2.92
Q1
1.55
Min
-2.78
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Paycom Software (PAYC) vs. Paychex (PAYX): A comparison of their P/B ratio against the Commercial & Professional Services industry group benchmark.

Valuation Metrics

Valuation metrics for Paycom Software (PAYC) and Paychex (PAYX)
MetricPAYCPAYX
P/E Ratio (TTM)22.6923.23
P/S Ratio (TTM)4.886.31
P/B Ratio (MRQ)14.6211.25
Free Cash Flow Yield (TTM)5.69%4.53%