Head to Head Analysis: Paylocity (PCTY) versus LogMeIn (LOGM)

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

Valuation and Earnings

This table compares Paylocity and LogMeIn’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paylocity $363.52 million 11.65 $38.59 million $0.31 258.94
LogMeIn $989.79 million 4.48 $99.52 million $3.35 25.51

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Paylocity and LogMeIn, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paylocity 0 5 10 0 2.67
LogMeIn 0 5 5 0 2.50

Paylocity currently has a consensus price target of $64.31, suggesting a potential downside of 19.89%. LogMeIn has a consensus price target of $120.00, suggesting a potential upside of 40.43%. Given LogMeIn’s higher possible upside, analysts plainly believe LogMeIn is more favorable than Paylocity.

Risk & Volatility

Paylocity has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500. Comparatively, LogMeIn has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Paylocity 10.22% 12.44% 1.55%
LogMeIn 12.34% 6.75% 5.34%

Insider & Institutional Ownership

65.4% of Paylocity shares are owned by institutional investors. Comparatively, 98.8% of LogMeIn shares are owned by institutional investors. 48.8% of Paylocity shares are owned by insiders. Comparatively, 2.5% of LogMeIn shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

LogMeIn pays an annual dividend of $1.20 per share and has a dividend yield of 1.4%. Paylocity does not pay a dividend. LogMeIn pays out 35.8% of its earnings in the form of a dividend.

Paylocity Company Profile

Paylocity Holding Corporation provides cloud-based payroll and human capital management software solutions for medium-sized organizations in the United States. The company offers Paylocity Web Pay for enterprise-grade payroll processing and administration; Paylocity Web HR for employee record management, HR compliance and reporting, HR insight and analytics, and self-service portals; 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. It 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. In addition, the company offers third-party administrative services for clients designed to modernize the administration of flexible spending accounts, health savings accounts, transportation management accounts, premium only plans, and health reimbursement arrangements for their employees. Further, it provides implementation and training, client, and tax and regulatory services. The company was founded in 1997 and is headquartered in Schaumburg, Illinois.

LogMeIn Company Profile

LogMeIn, Inc. provides a portfolio of cloud-based communication and collaboration, identity and access, and customer engagement and support solutions. It enables people to connect with each other worldwide to drive meaningful interactions, deepen relationships, and create better outcomes for individuals and businesses. The company offers GoToMeeting, a product for online meetings, sales demonstrations, and collaborative gatherings; GoToTraining, an online training product for interactive training sessions; GoToConference, a video and audio conferencing solution; GoToWebinar, a do-it-yourself Webinar product for organizations; join.me, join.me pro, and join.me business, which are online meeting and screen sharing services; OpenVoice, a reservation-less audio conferencing service; and Grasshopper, a provider of telephony solutions. It also provides Bold360 and BoldChat that are live chat and omni-channel engagement services; Bold360 ai, an automated customer service; GoToAssist, GoToAssist Corporate, and GoToAssist Seeit, which offer cloud-based remote support solutions to remotely troubleshoot and fix computers, mobile devices, and apps; LogMeIn Rescue, a remote support and customer care service; and LogMeIn Rescue+Mobile and Rescue Lens that are Web-based remote support services. In addition, the company offers LogMeIn Central, a Web-based management console; GoToMyPC that enables mobile workstyles; LogMeIn Pro, a remote access service; LastPass, a password management and single sign on solution; and Jive, a cloud-based unified communications platform. It serves enterprise customers, small and medium businesses, IT service providers, mobile carriers, customer service centers, OEMs, and consumers. The company was formerly known as 3am Labs, Inc. and changed its name to LogMeIn, Inc. in March 2006. LogMeIn, Inc. was founded in 2003 and is headquartered in Boston, Massachusetts with additional locations in North America, Europe, Asia, and Australia.

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