AppFolio, Inc. (APPF) vs Paylocity Holding Corporation (PCTY)

AppFolio, Inc. and Paylocity Holding Corporation are both Software Application companies. AppFolio, Inc. and Paylocity Holding Corporation are of similar size ($8.9B and $8.3B). Paylocity Holding Corporation trades at the lower P/E: 34.1× against 48.8×. AppFolio, Inc. grew revenue faster over the last twelve months: 20.0% against 11.0%. AppFolio, Inc. has the higher net margin (15.6% vs 15.2%) and the higher return on invested capital (46.5% vs 23.4%). Across the 22 metrics below, Paylocity Holding Corporation leads on 12 and AppFolio, Inc. on 10.

Valuation

Metric APPF PCTY Software Application median
P/E 48.75 34.07 25.90
P/S 7.58 5.20 3.04
P/B 14.15 7.54 2.60
Price to free cash flow 31.45 21.54 17.17
EV/EBITDA 33.45 20.12 15.48
EV/Sales 7.39 5.09 2.89
Earnings yield 2.05% 2.94% 0.00%
Free cash flow yield 3.18% 4.64% 1.98%

Profitability

Metric APPF PCTY Software Application median
Gross margin 63.79% 69.19% 66.89%
Operating margin 18.83% 21.79% 0.00%
Net margin 15.62% 15.23% 0.00%
Free cash flow margin 25.53% 24.15% 5.77%
Return on equity 31.42% 21.97% 0.00%
Return on assets 25.05% 5.82% 0.00%
Return on invested capital 46.49% 23.40% 0.00%

Growth

Metric APPF PCTY Software Application median
Revenue growth (TTM) 19.96% 11.04% 12.27%
EPS growth (last fiscal year) (30.09%) 22.39% 32.11%
Revenue growth, 5-year CAGR 25.12% 22.75% 14.34%
Net income growth, 5-year CAGR (2.31%) 30.89% 0.00%

Health

Metric APPF PCTY Software Application median
Debt to equity 0.00 0.07 0.02
Current ratio 4.00 1.09 1.53
Net debt to EBITDA (1.33) (0.43) 0.09

Dividend

Metric APPF PCTY Software Application median
Dividend yield — — 1.10%
Payout ratio — — 0.28

Size

Metric APPF PCTY Software Application median
Market cap 8.27b 8.85b 487.58m

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