HubSpot, Inc. (HUBS) vs Paylocity Holding Corporation (PCTY)

HubSpot, Inc. and Paylocity Holding Corporation are both Software Application companies. HubSpot, Inc. is the larger, with a market value of $10.2B against $8.9B — 1.2× the size. Paylocity Holding Corporation trades at the lower P/E: 34.1× against 49.0×. HubSpot, Inc. grew revenue faster over the last twelve months: 20.1% against 11.0%. Paylocity Holding Corporation has the higher net margin (15.2% vs 5.95%) and the lower return on invested capital (23.4% vs 36.2%). Across the 22 metrics below, HubSpot, Inc. leads on 14 and Paylocity Holding Corporation on 8.

Valuation

Metric HUBS PCTY Software Application median
P/E 48.96 34.07 25.90
P/S 2.84 5.20 3.04
P/B 6.25 7.54 2.60
Price to free cash flow 15.02 21.54 17.17
EV/EBITDA 35.42 20.12 15.48
EV/Sales 2.60 5.09 2.89
Earnings yield 2.04% 2.94% 0.00%
Free cash flow yield 6.66% 4.64% 1.98%

Profitability

Metric HUBS PCTY Software Application median
Gross margin 83.02% 69.19% 66.89%
Operating margin 5.34% 21.79% 0.00%
Net margin 5.95% 15.23% 0.00%
Free cash flow margin 18.89% 24.15% 5.77%
Return on equity 12.25% 21.97% 0.00%
Return on assets 6.11% 5.82% 0.00%
Return on invested capital 36.16% 23.40% 0.00%

Growth

Metric HUBS PCTY Software Application median
Revenue growth (TTM) 20.06% 11.04% 12.27%
EPS growth (last fiscal year) 855.56% 22.39% 32.11%
Revenue growth, 5-year CAGR 28.81% 22.75% 14.34%
Net income growth, 5-year CAGR 0.00% 30.89% 0.00%

Health

Metric HUBS PCTY Software Application median
Debt to equity 0.00 0.07 0.02
Current ratio 1.34 1.09 1.53
Net debt to EBITDA (16.42) (0.43) 0.09

Dividend

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

Size

Metric HUBS PCTY Software Application median
Market cap 10.22b 8.85b 487.58m

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