PAYC vs. SNPS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at PAYC and SNPS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | PAYC | SNPS |
|---|---|---|
| Company Name | Paycom Software, Inc. | Synopsys, Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Information Technology |
| GICS Industry | Professional Services | Software |
| Market Capitalization | 12.24 billion USD | 90.79 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | April 15, 2014 | February 26, 1992 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of PAYC and SNPS 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 | PAYC | SNPS |
|---|---|---|
| 5-Day Price Return | -4.27% | 0.32% |
| 13-Week Price Return | -10.05% | -6.32% |
| 26-Week Price Return | -6.55% | 9.54% |
| 52-Week Price Return | 24.04% | -3.48% |
| Month-to-Date Return | -8.37% | -0.93% |
| Year-to-Date Return | 1.55% | 0.70% |
| 10-Day Avg. Volume | 0.78M | 4.05M |
| 3-Month Avg. Volume | 0.63M | 2.41M |
| 3-Month Volatility | 29.85% | 87.18% |
| Beta | 0.89 | 1.18 |
Profitability
Return on Equity (TTM)
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.
SNPS
14.31%
Software Industry
- Max
- 66.28%
- Q3
- 21.28%
- Median
- 9.33%
- Q1
- -8.77%
- Min
- -48.16%
SNPS’s Return on Equity of 14.31% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
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.
SNPS
31.04%
Software Industry
- Max
- 51.92%
- Q3
- 19.23%
- Median
- 6.98%
- Q1
- -7.14%
- Min
- -41.00%
A Net Profit Margin of 31.04% places SNPS in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
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.
SNPS
17.16%
Software Industry
- Max
- 60.40%
- Q3
- 21.25%
- Median
- 9.90%
- Q1
- -4.97%
- Min
- -43.50%
SNPS’s Operating Profit Margin of 17.16% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | PAYC | SNPS |
|---|---|---|
| Return on Equity (TTM) | 25.35% | 14.31% |
| Return on Assets (TTM) | 9.26% | 8.15% |
| Net Profit Margin (TTM) | 21.21% | 31.04% |
| Operating Profit Margin (TTM) | 28.10% | 17.16% |
| Gross Profit Margin (TTM) | 82.44% | 79.12% |
Financial Strength
Current Ratio (MRQ)
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.
SNPS
1.62
Software Industry
- Max
- 4.29
- Q3
- 2.37
- Median
- 1.40
- Q1
- 1.03
- Min
- 0.25
SNPS’s Current Ratio of 1.62 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
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.
SNPS
0.52
Software Industry
- Max
- 2.16
- Q3
- 0.86
- Median
- 0.31
- Q1
- 0.00
- Min
- 0.00
SNPS’s Debt-to-Equity Ratio of 0.52 is typical for the Software 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 (TTM)
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.
SNPS
257.02
Software Industry
- Max
- 89.65
- Q3
- 32.64
- Median
- 1.00
- Q1
- -9.84
- Min
- -71.23
With an Interest Coverage Ratio of 257.02, SNPS demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | PAYC | SNPS |
|---|---|---|
| Current Ratio (MRQ) | 1.30 | 1.62 |
| Quick Ratio (MRQ) | 1.27 | 1.42 |
| Debt-to-Equity Ratio (MRQ) | 0.00 | 0.52 |
| Interest Coverage Ratio (TTM) | 191.88 | 257.02 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
PAYC
0.71%
Professional Services Industry
- Max
- 4.83%
- Q3
- 2.44%
- Median
- 1.52%
- Q1
- 0.52%
- Min
- 0.00%
PAYC’s Dividend Yield of 0.71% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.
SNPS
0.00%
Software Industry
- Max
- 0.22%
- Q3
- 0.11%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SNPS 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.
Dividend Payout Ratio (TTM)
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.
SNPS
0.00%
Software Industry
- Max
- 3.29%
- Q3
- 2.41%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SNPS 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.
Dividend at a Glance
| Symbol | PAYC | SNPS |
|---|---|---|
| Dividend Yield (TTM) | 0.71% | 0.00% |
| Dividend Payout Ratio (TTM) | 20.52% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
PAYC
28.98
Professional Services Industry
- Max
- 52.60
- Q3
- 33.83
- Median
- 24.95
- Q1
- 17.59
- Min
- 7.96
PAYC’s P/E Ratio of 28.98 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.
SNPS
45.41
Software Industry
- Max
- 145.74
- Q3
- 94.88
- Median
- 45.35
- Q1
- 26.66
- Min
- 8.80
SNPS’s P/E Ratio of 45.41 is within the middle range for the Software 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)
PAYC
6.15
Professional Services Industry
- Max
- 8.27
- Q3
- 4.40
- Median
- 2.09
- Q1
- 0.99
- Min
- 0.17
PAYC’s P/S Ratio of 6.15 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.
SNPS
14.10
Software Industry
- Max
- 25.67
- Q3
- 13.68
- Median
- 8.28
- Q1
- 4.95
- Min
- 0.90
SNPS’s P/S Ratio of 14.10 is in the upper echelon for the Software 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)
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.
SNPS
4.24
Software Industry
- Max
- 30.67
- Q3
- 14.92
- Median
- 8.52
- Q1
- 3.89
- Min
- 0.38
SNPS’s P/B Ratio of 4.24 is within the conventional range for the Software 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 | PAYC | SNPS |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 28.98 | 45.41 |
| Price-to-Sales Ratio (TTM) | 6.15 | 14.10 |
| Price-to-Book Ratio (MRQ) | 7.19 | 4.24 |
| Price-to-Free Cash Flow Ratio (TTM) | 33.95 | 77.13 |