Comparing Paylocity (PCTY) & PTC (PTC)

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Paylocity (NASDAQ: PTC) and PTC (NASDAQ:PTC) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.

Profitability

This table compares Paylocity and PTC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paylocity 10.22% 13.21% 1.57%
PTC 4.55% 11.62% 4.44%

Valuation & Earnings

This table compares Paylocity and PTC’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paylocity $363.52 million 10.00 $38.60 million $0.31 222.32
PTC $1.16 billion 9.34 $6.23 million $0.74 124.74

Paylocity has higher earnings, but lower revenue than PTC. PTC is trading at a lower price-to-earnings ratio than Paylocity, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Paylocity has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500. Comparatively, PTC has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Paylocity and PTC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paylocity 0 5 9 0 2.64
PTC 0 4 11 0 2.73

Paylocity presently has a consensus price target of $63.00, suggesting a potential downside of 8.59%. PTC has a consensus price target of $99.67, suggesting a potential upside of 7.97%. Given PTC’s stronger consensus rating and higher possible upside, analysts plainly believe PTC is more favorable than Paylocity.

Insider and Institutional Ownership

63.8% of Paylocity shares are owned by institutional investors. Comparatively, 96.1% of PTC shares are owned by institutional investors. 48.8% of Paylocity shares are owned by company insiders. Comparatively, 1.2% of PTC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Paylocity Company Profile

Paylocity Holding Corporation provides cloud-based payroll and human capital management (HCM) software solutions for medium-sized organizations in the United States. It offers Paylocity Web Pay for enterprise-grade payroll processing and administration; Paylocity Web HR for employee record management and HR compliance and reporting; Talent Management for employee performance appraisal process and performance review; Paylocity Web Time, a time and attendance solution; and Paylocity Web Expense, an expense management tool designed to streamline and automate the expense management process. The company also provides Paylocity Web Benefits and Paylocity Enterprise Benefits, which are benefit management solutions that integrate with insurance carrier systems to provide automated administrative processes and allow users to choose benefit elections and make life event changes online, summarize benefit elections, and perform other benefit-related tasks, as well as enable premium reconciliation, management of voluntary benefits, and reporting. Paylocity Holding Corporation was founded in 1997 and is headquartered in Arlington Heights, Illinois.

PTC Company Profile

PTC Inc. develops and delivers software products and solutions worldwide. It operates through three segments: IoT Group, Solutions Group, and Professional Services. It offers ThingWorx, an industrial innovation platform to develop and deploy industrial Internet of Things (IoT) applications and augmented reality (AR) experiences; and KEPServerEX solution to provide communications connectivity for industrial automation environments to connect, manage, monitor, and control disparate devices and software applications. It also provides Vuforia Studio tool for industrial enterprises to rapidly author and publish AR experiences; Vuforia, an AR technology platform to build applications that see and interact with things; Creo, an interoperable suite of product design software for design engineers; and Mathcad software for solving, analyzing, and sharing vital engineering calculations. In addition, it offers Windchill that provides product lifecycle management capabilities; ThingWorx Navigate for complete, contextual, up-to-date, and accurate product information; Integrity solution to manage system models, software configurations, test plans, and defects; and Creo View solution to share 3D computer-aided design information, and support drawings and documents from a multitude of sources. Further, it provides Servigistics, a suite of software products that enable a systematic approach to service lifecycle management; and Servigistics Arbortext, an enterprise software suite which allows manufacturers to create, illustrate, manage, and publish technical and service parts information, as well as offers consulting, implementation, training, cloud, and license and support services. PTC Inc. markets its products primarily through professionals, third-party resellers, and strategic partners. The company was formerly known as Parametric Technology Corporation and changed its name to PTC Inc. in January 2013. PTC Inc. was founded in 1985 and is headquartered in Needham, Massachusetts.

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