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

Paycom Software, Inc. and Procore Technologies, Inc. are both Software Application companies. Paycom Software, Inc. and Procore Technologies, Inc. are of similar size ($11.5B and $11.1B). Procore Technologies, Inc. has negative trailing earnings, so its P/E is not meaningful; Paycom Software, Inc. trades at 23.8×. Procore Technologies, Inc. grew revenue faster over the last twelve months: 16.5% against 9.49%. Paycom Software, Inc. has the higher net margin (23.3% vs −2.31%) and the higher return on invested capital (36.2% vs −8.14%). Across the 21 metrics below, Paycom Software, Inc. leads on 15 and Procore Technologies, Inc. on 6.

Valuation

Metric PAYC PCOR Software Application median
P/E 23.79 n/m 25.90
P/S 5.21 7.71 3.04
P/B 16.13 10.56 2.60
Price to free cash flow 17.77 39.91 17.17
EV/EBITDA 14.15 182.34 15.48
EV/Sales 5.46 7.30 2.89
Earnings yield 4.20% (0.30%) 0.00%
Free cash flow yield 5.63% 2.51% 1.98%

Profitability

Metric PAYC PCOR Software Application median
Gross margin 0.00% 80.15% 66.89%
Operating margin 33.39% (4.13%) 0.00%
Net margin 23.28% (2.31%) 0.00%
Free cash flow margin 30.08% 25.25% 5.77%
Return on equity 42.21% (2.98%) 0.00%
Return on assets 9.87% (1.34%) 0.00%
Return on invested capital 36.20% (8.14%) 0.00%

Growth

Metric PAYC PCOR Software Application median
Revenue growth (TTM) 9.49% 16.50% 12.27%
EPS growth (last fiscal year) (9.42%) 6.94% 32.11%
Revenue growth, 5-year CAGR 19.51% 27.00% 14.34%
Net income growth, 5-year CAGR 25.88% 0.00% 0.00%

Health

Metric PAYC PCOR Software Application median
Debt to equity 1.06 0.00 0.02
Current ratio 1.06 1.06 1.53
Net debt to EBITDA (0.50) 53.89 0.09

Dividend

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

Size

Metric PAYC PCOR Software Application median
Market cap 11.07b 11.49b 487.58m

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