Paylocity Holding Corporation (NASDAQ: PCTY) is one of 116 publicly-traded companies in the “Software” industry, but how does it compare to its rivals? We will compare Paylocity Holding Corporation to related businesses based on the strength of its analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Paylocity Holding Corporation and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paylocity Holding Corporation 0 6 9 0 2.60
Paylocity Holding Corporation Competitors 388 2306 4382 115 2.59

Paylocity Holding Corporation currently has a consensus price target of $51.33, suggesting a potential upside of 12.15%. As a group, “Software” companies have a potential upside of 9.88%. Given Paylocity Holding Corporation’s stronger consensus rating and higher possible upside, equities analysts plainly believe Paylocity Holding Corporation is more favorable than its rivals.

Profitability

This table compares Paylocity Holding Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paylocity Holding Corporation 2.24% 6.13% 0.71%
Paylocity Holding Corporation Competitors -42.11% -43.60% -9.86%

Valuation and Earnings

This table compares Paylocity Holding Corporation and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Paylocity Holding Corporation $300.01 million $18.88 million 381.42
Paylocity Holding Corporation Competitors $1.53 billion $451.94 million 41.80

Paylocity Holding Corporation’s rivals have higher revenue and earnings than Paylocity Holding Corporation. Paylocity Holding Corporation is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

60.9% of Paylocity Holding Corporation shares are held by institutional investors. Comparatively, 61.0% of shares of all “Software” companies are held by institutional investors. 53.1% of Paylocity Holding Corporation shares are held by company insiders. Comparatively, 17.8% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Paylocity Holding Corporation has a beta of 2.25, meaning that its share price is 125% more volatile than the S&P 500. Comparatively, Paylocity Holding Corporation’s rivals have a beta of 0.98, meaning that their average share price is 2% less volatile than the S&P 500.

Summary

Paylocity Holding Corporation beats its rivals on 8 of the 13 factors compared.

Paylocity Holding Corporation Company Profile

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.

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