InterDigital, Inc. (IDCC) vs Paycom Software, Inc. (PAYC)

InterDigital, Inc. and Paycom Software, Inc. are both Software Application companies. Paycom Software, Inc. is the larger, with a market value of $9.8B against $8.5B — 1.2× the size. Paycom Software, Inc. trades at the lower P/E: 23.4× against 28.5×. Paycom Software, Inc. grew revenue faster over the last twelve months: 9.22% against −11.7%. InterDigital, Inc. has the higher net margin (38.3% vs 22.8%) and the higher return on invested capital (45.0% vs 31.8%). Both pay a dividend; InterDigital, Inc. yields more (1.38% vs 0.57%). Across the 23 metrics below, InterDigital, Inc. leads on 13 and Paycom Software, Inc. on 10.

Valuation

Metric IDCC PAYC Software Application median
P/E 28.49 23.38 24.79
P/S 10.95 4.72 2.67
P/B 7.18 17.67 3.01
Price to free cash flow 23.25 18.10 16.59
EV/EBITDA 18.67 12.79 14.40
EV/Sales 10.03 5.05 2.62
Earnings yield 3.51% 4.28% 0.00%
Free cash flow yield 4.30% 5.53% 1.91%

Profitability

Metric IDCC PAYC Software Application median
Gross margin 100.00% 83.66% 67.03%
Operating margin 43.77% 30.29% 0.00%
Net margin 38.32% 22.78% 0.00%
Free cash flow margin 62.98% 26.87% 4.32%
Return on equity 26.40% 41.09% 0.00%
Return on assets 14.47% 10.56% 0.00%
Return on invested capital 45.04% 31.83% 0.00%

Growth

Metric IDCC PAYC Software Application median
Revenue growth (TTM) (11.66%) 9.22% 12.40%
EPS growth (last fiscal year) (2.24%) (9.42%) —
Revenue growth, 5-year CAGR 18.36% 19.51% 13.72%
Net income growth, 5-year CAGR 55.45% 25.88% 0.00%

Health

Metric IDCC PAYC Software Application median
Debt to equity 0.32 1.57 0.02
Current ratio 1.74 1.07 1.55
Net debt to EBITDA (1.43) (0.50) 0.06

Dividend

Metric IDCC PAYC Software Application median
Dividend yield 1.38% 0.57% 1.25%
Payout ratio 0.22 0.07 0.00

Size

Metric IDCC PAYC Software Application median
Market cap 8.47b 9.78b 396.11m

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