How Does PAYC Stack Up Against Its Peers?
Here is how Paycom Software (PAYC) 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, PCTY.
- PAYC gained 22.0% in the past year and trades at a PE of 27.2, outperforming its peers.
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.
PAYC stock has fallen meaningfully recently and we currently find it fairly priced. This may feel like a caution, and there is significant risk in relying on a single stock. However, there is a huge value to a broader diversified approach we take with Trefis High Quality Portfolio. Should you buy one stock you like or build a portfolio designed to win across cycles? Our numbers show that High Quality Portfolio has turned stock-picking uncertainty into market-beating consistency. This portfolio is incorporated in asset allocation strategy of Empirical Asset Management – a Boston area wealth manager and Trefis partner – whose asset allocation framework yielded positive returns during the 2008-09 period when the S&P lost more than 40%.
| PAYC | ACN | ADP | PAYX | CTSH | PCTY | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 11.3 | 153.2 | 118.2 | 44.9 | 33.4 | 8.6 |
| Revenue ($ Bil) | 2.0 | 68.5 | 20.6 | 5.6 | 20.1 | 1.5 |
| PE Ratio | 27.2 | 19.3 | 29.0 | 27.1 | 14.2 | 40.6 |
| LTM Revenue Growth | 10.2% | 6.2% | 7.1% | 5.6% | 4.1% | 7.0% |
| LTM Operating Margin | 28.1% | 15.4% | 26.3% | 39.6% | 15.4% | 18.1% |
| LTM FCF Margin | 18.1% | 15.0% | 21.4% | 30.7% | 10.6% | 22.1% |
| 12M Market Return | 22.0% | -30.8% | 4.5% | -8.1% | -10.2% | -6.7% |
Why does this matter? PAYC just went down -10.1% 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.
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Revenue Growth Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| PAYC | 10.2% | – | 11.2% | 23.2% | 30.3% |
| ACN | 6.2% | – | 1.2% | 4.1% | 21.9% |
| ADP | 7.1% | 7.1% | 6.6% | 9.2% | |
| PAYX | 5.6% | 5.6% | 5.4% | 8.6% | |
| CTSH | 4.1% | – | 2.0% | -0.4% | 5.0% |
| PCTY | 7.0% | 13.7% | 19.4% | 37.8% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| PAYC | 28.1% | – | 33.7% | 26.6% | 27.5% |
| ACN | 15.4% | – | 14.8% | 13.7% | 15.2% |
| ADP | 26.3% | 26.3% | 25.8% | 25.0% | |
| PAYX | 39.6% | 39.6% | 41.2% | 40.6% | |
| CTSH | 15.4% | – | 15.3% | 15.1% | 15.3% |
| PCTY | 18.1% | 19.1% | 18.5% | 13.2% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| PAYC | 27.2 | – | 22.9 | 35.0 | 63.8 |
| ACN | 19.3 | – | 30.4 | 32.2 | 24.6 |
| ADP | 29.0 | 29.2 | 25.5 | 29.0 | |
| PAYX | 27.1 | 30.5 | 25.4 | 26.7 | |
| CTSH | 14.2 | – | 17.0 | 17.9 | 12.9 |
| PCTY | 40.6 | 48.9 | 44.8 | 76.8 |
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.