Contrasting Paylocity Holding Corporation (PCTY) and Nice Systems (NICE)
Paylocity Holding Corporation (NASDAQ: PCTY) and Nice Systems (NASDAQ:NICE) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitabiliy, valuation, institutional ownership and analyst recommendations.
This table compares Paylocity Holding Corporation and Nice Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Paylocity Holding Corporation||1.81%||5.24%||0.54%|
This is a breakdown of current ratings and recommmendations for Paylocity Holding Corporation and Nice Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Paylocity Holding Corporation||0||6||7||0||2.54|
Paylocity Holding Corporation currently has a consensus price target of $48.40, suggesting a potential upside of 0.06%. Nice Systems has a consensus price target of $77.50, suggesting a potential upside of 2.26%. Given Nice Systems’ higher possible upside, analysts clearly believe Nice Systems is more favorable than Paylocity Holding Corporation.
Institutional & Insider Ownership
63.7% of Paylocity Holding Corporation shares are owned by institutional investors. Comparatively, 43.0% of Nice Systems shares are owned by institutional investors. 53.1% of Paylocity Holding Corporation shares are owned by insiders. Comparatively, 0.0% of Nice Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Nice Systems pays an annual dividend of $0.39 per share and has a dividend yield of 0.5%. Paylocity Holding Corporation does not pay a dividend. Nice Systems pays out 23.9% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Paylocity Holding Corporation and Nice Systems’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Paylocity Holding Corporation||$283.79 million||8.78||$16.59 million||$0.08||604.63|
|Nice Systems||$1.10 billion||4.16||$232.45 million||$1.63||46.50|
Nice Systems has higher revenue and earnings than Paylocity Holding Corporation. Nice Systems is trading at a lower price-to-earnings ratio than Paylocity Holding Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Paylocity Holding Corporation has a beta of 2.28, meaning that its stock price is 128% more volatile than the S&P 500. Comparatively, Nice Systems has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.
About Paylocity Holding Corporation
Paylocity Holding Corporation is a cloud-based provider of payroll and human capital management (HCM), software solutions for medium-sized organizations. The Company’s services are provided in a software-as-a-service delivery model utilizing its cloud-based platform. The cloud-based platform provides a suite of applications using a multi-tenant architecture. The cloud-based platform features a suite of unified payroll and HCM applications. The Company, through cloud-based platform, offers various products, which include Paylocity Web Pay, Paylocity HR, Paylocity Affordable Care Act Enhanced, Paylocity Impressions, Performance Management, Self-Service HR Portals, Paylocity Recruiting, Paylocity Web Time, Paylocity Web Onboarding, and Paylocity Web Benefits and Paylocity Enterprise Benefits, Powered by bswift. The multi-tenant software platform is configurable and includes a unified suite of payroll and HCM applications, such as time and labor tracking, benefits and talent management.
About Nice Systems
NICE Ltd., formerly NICE-Systems Ltd., is a global enterprise software provider. The Company’s segments include Customer Interactions Solutions, and Financial Crime and Compliance Solutions. The Customer Interactions Solutions segment provides data driven insights that enable businesses to deliver personalized experience to customers. The Financial Crime and Compliance Solutions segment provides real time and cross-channel fraud prevention, anti-money laundering, brokerage compliance and enterprise-wide case management. The Company serves contact centers, back office operations and retail branches, covering various industries, including communications, banking, insurance, healthcare, business processes outsourcing (BPO), government, utilities, travel and entertainment. Its Multi-Channel Recording and Interaction Management enables organizations to capture structured and unstructured customer interaction and transaction data from multiple channels.
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