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PAYX vs. POOL: A Head-to-Head Stock Comparison

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Here’s a clear look at PAYX and POOL, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolPAYXPOOL
Company NamePaychex, Inc.Pool Corporation
CountryUnited StatesUnited States
GICS SectorIndustrialsConsumer Discretionary
GICS IndustryProfessional ServicesDistributors
Market Capitalization50.73 billion USD12.08 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateAugust 26, 1983October 13, 1995
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of PAYX and POOL 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.

PAYX vs. POOL: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolPAYXPOOL
5-Day Price Return2.36%2.42%
13-Week Price Return-9.86%6.93%
26-Week Price Return-5.11%-5.76%
52-Week Price Return10.85%-7.77%
Month-to-Date Return-2.44%5.06%
Year-to-Date Return0.42%-5.05%
10-Day Avg. Volume2.24M0.53M
3-Month Avg. Volume2.13M0.59M
3-Month Volatility26.24%31.71%
Beta0.951.12

Profitability

Return on Equity (TTM)

PAYX

41.38%

Professional Services Industry

Max
52.17%
Q3
30.06%
Median
22.21%
Q1
11.67%
Min
-13.44%

In the upper quartile for the Professional Services industry, PAYX’s Return on Equity of 41.38% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

POOL

31.34%

Distributors Industry

Max
18.85%
Q3
17.85%
Median
13.11%
Q1
11.23%
Min
11.19%

POOL’s Return on Equity of 31.34% is exceptionally high, placing it well beyond the typical range for the Distributors industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

PAYX vs. POOL: A comparison of their Return on Equity (TTM) against their respective Professional Services and Distributors industry benchmarks.

Net Profit Margin (TTM)

PAYX

29.74%

Professional Services Industry

Max
26.06%
Q3
13.34%
Median
7.88%
Q1
3.50%
Min
-2.93%

PAYX’s Net Profit Margin of 29.74% is exceptionally high, placing it well beyond the typical range for the Professional Services industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

POOL

7.79%

Distributors Industry

Max
5.04%
Q3
4.92%
Median
4.56%
Q1
4.55%
Min
4.54%

POOL’s Net Profit Margin of 7.79% is exceptionally high, placing it well beyond the typical range for the Distributors industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

PAYX vs. POOL: A comparison of their Net Profit Margin (TTM) against their respective Professional Services and Distributors industry benchmarks.

Operating Profit Margin (TTM)

PAYX

39.01%

Professional Services Industry

Max
35.84%
Q3
19.38%
Median
12.54%
Q1
7.36%
Min
-5.21%

PAYX’s Operating Profit Margin of 39.01% is exceptionally high, placing it well above the typical range for the Professional Services industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

POOL

11.13%

Distributors Industry

Max
11.14%
Q3
7.80%
Median
5.53%
Q1
3.65%
Min
3.17%

An Operating Profit Margin of 11.13% places POOL in the upper quartile for the Distributors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

PAYX vs. POOL: A comparison of their Operating Profit Margin (TTM) against their respective Professional Services and Distributors industry benchmarks.

Profitability at a Glance

SymbolPAYXPOOL
Return on Equity (TTM)41.38%31.34%
Return on Assets (TTM)13.58%11.64%
Net Profit Margin (TTM)29.74%7.79%
Operating Profit Margin (TTM)39.01%11.13%
Gross Profit Margin (TTM)90.67%29.46%

Financial Strength

Current Ratio (MRQ)

PAYX

1.28

Professional Services Industry

Max
2.45
Q3
1.65
Median
1.26
Q1
1.10
Min
0.47

PAYX’s Current Ratio of 1.28 aligns with the median group of the Professional Services industry, indicating that its short-term liquidity is in line with its sector peers.

POOL

2.52

Distributors Industry

Max
1.81
Q3
1.72
Median
1.48
Q1
1.24
Min
1.15

POOL’s Current Ratio of 2.52 is exceptionally high, placing it well outside the typical range for the Distributors 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.

PAYX vs. POOL: A comparison of their Current Ratio (MRQ) against their respective Professional Services and Distributors industry benchmarks.

Debt-to-Equity Ratio (MRQ)

PAYX

1.20

Professional Services Industry

Max
2.63
Q3
1.44
Median
0.91
Q1
0.49
Min
0.00

PAYX’s Debt-to-Equity Ratio of 1.20 is typical for the Professional Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

POOL

0.95

Distributors Industry

Max
1.09
Q3
0.98
Median
0.75
Q1
0.52
Min
0.46

POOL’s Debt-to-Equity Ratio of 0.95 is typical for the Distributors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

PAYX vs. POOL: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Professional Services and Distributors industry benchmarks.

Interest Coverage Ratio (TTM)

PAYX

55.47

Professional Services Industry

Max
39.67
Q3
20.05
Median
11.07
Q1
5.36
Min
-2.22

With an Interest Coverage Ratio of 55.47, PAYX 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.

POOL

12.28

Distributors Industry

Max
13.15
Q3
10.84
Median
5.59
Q1
4.01
Min
3.80

POOL’s Interest Coverage Ratio of 12.28 is in the upper quartile for the Distributors industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

PAYX vs. POOL: A comparison of their Interest Coverage Ratio (TTM) against their respective Professional Services and Distributors industry benchmarks.

Financial Strength at a Glance

SymbolPAYXPOOL
Current Ratio (MRQ)1.282.52
Quick Ratio (MRQ)1.220.82
Debt-to-Equity Ratio (MRQ)1.200.95
Interest Coverage Ratio (TTM)55.4712.28

Growth

Revenue Growth

PAYX vs. POOL: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

PAYX vs. POOL: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

PAYX

2.88%

Professional Services Industry

Max
5.28%
Q3
2.51%
Median
1.63%
Q1
0.62%
Min
0.00%

With a Dividend Yield of 2.88%, PAYX offers a more attractive income stream than most of its peers in the Professional Services industry, signaling a strong commitment to shareholder returns.

POOL

1.52%

Distributors Industry

Max
44.83%
Q3
35.02%
Median
4.81%
Q1
3.26%
Min
1.54%

POOL’s Dividend Yield of 1.52% is below the typical range for the Distributors industry. This indicates that shareholder returns are likely driven more by potential capital appreciation than by dividend income.

PAYX vs. POOL: A comparison of their Dividend Yield (TTM) against their respective Professional Services and Distributors industry benchmarks.

Dividend Payout Ratio (TTM)

PAYX

87.40%

Professional Services Industry

Max
109.23%
Q3
64.39%
Median
47.00%
Q1
20.35%
Min
0.00%

PAYX’s Dividend Payout Ratio of 87.40% is in the upper quartile for the Professional Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

POOL

44.67%

Distributors Industry

Max
1,122.47%
Q3
858.23%
Median
55.08%
Q1
44.32%
Min
34.92%

POOL’s Dividend Payout Ratio of 44.67% is within the typical range for the Distributors industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

PAYX vs. POOL: A comparison of their Dividend Payout Ratio (TTM) against their respective Professional Services and Distributors industry benchmarks.

Dividend at a Glance

SymbolPAYXPOOL
Dividend Yield (TTM)2.88%1.52%
Dividend Payout Ratio (TTM)87.40%44.67%

Valuation

Price-to-Earnings Ratio (TTM)

PAYX

30.36

Professional Services Industry

Max
49.59
Q3
36.59
Median
28.13
Q1
18.55
Min
10.07

PAYX’s P/E Ratio of 30.36 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.

POOL

29.38

Distributors Industry

Max
28.99
Q3
25.04
Median
23.42
Q1
13.71
Min
6.24

At 29.38, POOL’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Distributors 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 vs. POOL: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Professional Services and Distributors industry benchmarks.

Price-to-Sales Ratio (TTM)

PAYX

9.03

Professional Services Industry

Max
9.54
Q3
5.11
Median
2.10
Q1
0.75
Min
0.11

PAYX’s P/S Ratio of 9.03 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.

POOL

2.29

Distributors Industry

Max
1.14
Q3
1.14
Median
0.96
Q1
0.61
Min
0.28

With a P/S Ratio of 2.29, POOL trades at a valuation that eclipses even the highest in the Distributors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

PAYX vs. POOL: A comparison of their Price-to-Sales Ratio (TTM) against their respective Professional Services and Distributors industry benchmarks.

Price-to-Book Ratio (MRQ)

PAYX

13.75

Professional Services Industry

Max
13.75
Q3
8.87
Median
4.35
Q1
2.43
Min
0.54

PAYX’s P/B Ratio of 13.75 is in the upper tier for the Professional Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

POOL

8.44

Distributors Industry

Max
3.72
Q3
3.57
Median
3.12
Q1
2.41
Min
1.47

At 8.44, POOL’s P/B Ratio is at an extreme premium to the Distributors 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 vs. POOL: A comparison of their Price-to-Book Ratio (MRQ) against their respective Professional Services and Distributors industry benchmarks.

Valuation at a Glance

SymbolPAYXPOOL
Price-to-Earnings Ratio (TTM)30.3629.38
Price-to-Sales Ratio (TTM)9.032.29
Price-to-Book Ratio (MRQ)13.758.44
Price-to-Free Cash Flow Ratio (TTM)29.9624.87