Paycom Software, Inc. (PAYC) vs Procore Technologies, Inc. (PCOR)

Paycom Software, Inc. and Procore Technologies, Inc. are both Software Application companies. Paycom Software, Inc. is the larger, with a market value of $11.2B against $8.9B — 1.3× the size. Procore Technologies, Inc. has negative trailing earnings, so its P/E is not meaningful; Paycom Software, Inc. trades at 26.6×. Procore Technologies, Inc. grew revenue faster over the last twelve months: 15.4% against 9.22%. Paycom Software, Inc. has the higher net margin (22.8% vs −2.73%) and the higher return on invested capital (31.8% vs −6.94%). Across the 21 metrics below, Paycom Software, Inc. leads on 14 and Procore Technologies, Inc. on 7.

Valuation

Metric PAYC PCOR Software Application median
P/E 26.57 n/m 25.41
P/S 5.36 6.06 2.73
P/B 20.08 6.75 2.57
Price to free cash flow 20.56 30.82 17.58
EV/EBITDA 14.40 168.53 15.36
EV/Sales 5.69 5.60 2.59
Earnings yield 3.76% (0.46%) 0.00%
Free cash flow yield 4.86% 3.24% 2.24%

Profitability

Metric PAYC PCOR Software Application median
Gross margin 83.66% 79.96% 67.03%
Operating margin 30.29% (4.86%) 0.00%
Net margin 22.78% (2.73%) 0.00%
Free cash flow margin 26.87% 19.67% 5.01%
Return on equity 41.09% (3.12%) 0.00%
Return on assets 10.56% (1.83%) 0.00%
Return on invested capital 31.83% (6.94%) 0.00%

Growth

Metric PAYC PCOR Software Application median
Revenue growth (TTM) 9.22% 15.41% 12.48%
EPS growth (last fiscal year) (9.42%) 6.94% 32.26%
Revenue growth, 5-year CAGR 19.51% 27.00% 14.21%
Net income growth, 5-year CAGR 25.88% 0.00% 0.00%

Health

Metric PAYC PCOR Software Application median
Debt to equity 1.57 0.00 0.02
Current ratio 1.07 1.17 1.52
Net debt to EBITDA (0.50) 53.89 0.08

Dividend

Metric PAYC PCOR Software Application median
Dividend yield 0.60% — 0.95%
Payout ratio 0.16 — 0.29

Size

Metric PAYC PCOR Software Application median
Market cap 11.20b 8.90b 357.77m

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