Paycom Software Stock vs Competition: Who Wins?
With Paycom Software falling -11% in a Day, it makes sense to re-evaluate vs its peers. Consistently assessing alternatives is core to a sound investment approach. Here is how Paycom Software (PAYC) stock stacks up against its peers in size, valuation, growth and margin.
- PAYC’s operating margin of 28.1% is high, higher than most peers though lower than PAYX (39.6%).
- PAYC’s revenue growth of 10.2% in the last 12 months is strong, outpacing ACN, ADP, PAYX, CTSH but lagging PCTY.
- PAYC’s stock is down 28.6% in last 1 year, and trades at a PE of 22.1; it underperformed ADP, PAYX, CTSH.
As a quick background, Paycom Software provides cloud-based human capital management software-as-a-service for small to mid-sized U.S. companies, offering talent acquisition, applicant tracking, background checks, onboarding, and tax credit services.
A single stock can be risky, but there is a huge value to a broader, diversified approach we take with the Trefis High Quality Portfolio. Trefis works with Empirical Asset Management — a Boston area wealth manager — whose asset allocation strategies yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Empirical has incorporated the Trefis HQ Portfolio in this asset allocation framework to provide clients with higher returns while taking on lower levels of risk versus the benchmark index.
| PAYC | ACN | ADP | PAYX | CTSH | PCTY | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 9.2 | 150.3 | 102.2 | 40.3 | 35.4 | 7.7 |
| Revenue ($ Bil) | 2.0 | 69.7 | 20.9 | 5.6 | 20.9 | 1.6 |
| PE Ratio | 22.1 | 19.6 | 24.7 | 24.3 | 16.6 | 34.1 |
| LTM Revenue Growth | 10.2% | 7.4% | 7.1% | 5.6% | 7.4% | 13.3% |
| LTM Operating Margin | 28.1% | 14.7% | 26.2% | 39.6% | 15.7% | 19.1% |
| LTM FCF Margin | 18.1% | 15.6% | 20.1% | 30.7% | 12.7% | 20.5% |
| 12M Market Return | -28.6% | -30.8% | -15.6% | -22.7% | -6.8% | -35.3% |
Why does this matter? PAYC just went down -20% in a month – peer comparison puts stock performance, valuation, and financials in context – highlighting whether it is truly outperforming, lagging behind, and above all – can this continue? Read Buy or Sell PAYC Stock to see if Paycom Software is really a falling knife. Sharp dips often come with rebound opportunities – see how the stock has dipped and recovered in the past through PAYC Dip Buyer Analysis lens.
Revenue Growth Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| PAYC | 10.2% | – | 11.2% | 23.2% | 30.3% |
| ACN | 7.4% | 7.4% | 1.2% | 4.1% | |
| ADP | 7.1% | 7.1% | 6.6% | 9.2% | |
| PAYX | 5.6% | 5.6% | 5.4% | 8.6% | |
| CTSH | 7.4% | – | 2.0% | -0.4% | 5.0% |
| PCTY | 13.3% | 13.7% | 19.4% | 37.8% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| PAYC | 28.1% | – | 33.7% | 26.6% | 27.5% |
| ACN | 14.7% | 14.7% | 14.8% | 13.7% | |
| ADP | 26.2% | 26.3% | 25.8% | 25.0% | |
| PAYX | 39.6% | 39.6% | 41.2% | 40.6% | |
| CTSH | 15.7% | – | 15.3% | 15.1% | 15.3% |
| PCTY | 19.1% | 19.1% | 18.5% | 13.2% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| PAYC | 22.1 | – | 22.9 | 35.0 | 63.8 |
| ACN | 19.6 | 28.6 | 30.3 | 24.5 | |
| ADP | 24.7 | 29.2 | 25.5 | 29.0 | |
| PAYX | 24.3 | 30.5 | 25.4 | 26.7 | |
| CTSH | 16.6 | – | 17.0 | 17.9 | 12.9 |
| PCTY | 34.1 | 48.9 | 44.8 | 76.8 |
While peer comparison is critical, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.