Dynatrace, Inc. (DT) vs Paycom Software, Inc. (PAYC)

Dynatrace, Inc. and Paycom Software, Inc. are both Software Application companies. Dynatrace, Inc. is the larger, with a market value of $12.5B against $11.1B — 1.1× the size. Paycom Software, Inc. trades at the lower P/E: 23.8× against 79.3×. Dynatrace, Inc. grew revenue faster over the last twelve months: 17.8% against 9.49%. Paycom Software, Inc. has the higher net margin (23.3% vs 7.42%) and the higher return on invested capital (36.2% vs 11.2%). Across the 22 metrics below, Paycom Software, Inc. leads on 15 and Dynatrace, Inc. on 7.

Valuation

Metric DT PAYC Software Application median
P/E 79.27 23.79 25.90
P/S 5.81 5.21 3.04
P/B 5.58 16.13 2.60
Price to free cash flow 21.89 17.77 17.17
EV/EBITDA 39.28 14.15 15.48
EV/Sales 5.49 5.46 2.89
Earnings yield 1.26% 4.20% 0.00%
Free cash flow yield 4.57% 5.63% 1.98%

Profitability

Metric DT PAYC Software Application median
Gross margin 81.05% 0.00% 66.89%
Operating margin 12.71% 33.39% 0.00%
Net margin 7.42% 23.28% 0.00%
Free cash flow margin 26.53% 30.08% 5.77%
Return on equity 6.41% 42.21% 0.00%
Return on assets 3.46% 9.87% 0.00%
Return on invested capital 11.16% 36.20% 0.00%

Growth

Metric DT PAYC Software Application median
Revenue growth (TTM) 17.77% 9.49% 12.27%
EPS growth (last fiscal year) (66.04%) (9.42%) 32.11%
Revenue growth, 5-year CAGR 23.47% 19.51% 14.34%
Net income growth, 5-year CAGR 16.53% 25.88% 0.00%

Health

Metric DT PAYC Software Application median
Debt to equity 0.62 1.06 0.02
Current ratio 2.09 1.06 1.53
Net debt to EBITDA (4.35) (0.50) 0.09

Dividend

Metric DT PAYC Software Application median
Dividend yield — 0.60% 1.10%
Payout ratio — 0.14 0.28

Size

Metric DT PAYC Software Application median
Market cap 12.54b 11.07b 487.58m

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