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Paychex, Inc. (PAYX) vs PTC Inc. (PTC)

Paychex, Inc. and PTC Inc. are both Software Application companies. Paychex, Inc. is the larger, with a market value of $37.2B against $21.1B — 1.8× the size. PTC Inc. trades at the lower P/E: 18.7× against 20.6×. PTC Inc. grew revenue faster over the last twelve months: 19.5% against 14.0%. PTC Inc. has the higher net margin (41.4% vs 27.4%) and the lower return on invested capital (15.4% vs 22.2%). Across the 22 metrics below, PTC Inc. leads on 13 and Paychex, Inc. on 9.

Valuation

Metric PAYX PTC Software Application median
P/E 20.59 18.70 24.69
P/S 5.60 7.55 2.74
P/B 9.98 6.43 2.83
Price to free cash flow 18.34 23.96 17.55
EV/EBITDA 12.50 18.68 14.66
EV/Sales 6.20 7.91 2.65
Earnings yield 4.86% 5.35% 0.00%
Free cash flow yield 5.45% 4.17% 1.87%

Profitability

Metric PAYX PTC Software Application median
Gross margin 74.39% 84.50% 67.03%
Operating margin 39.19% 37.81% 0.00%
Net margin 27.35% 41.43% 0.00%
Free cash flow margin 30.54% 31.67% 5.01%
Return on equity 47.06% 35.05% 0.00%
Return on assets 11.17% 19.21% 0.00%
Return on invested capital 22.23% 15.37% 0.00%

Growth

Metric PAYX PTC Software Application median
Revenue growth (TTM) 13.97% 19.50% 12.48%
EPS growth (last fiscal year) 6.77% 96.79% 32.26%
Revenue growth, 5-year CAGR 9.93% 13.44% 14.21%
Net income growth, 5-year CAGR 9.91% 41.22% 0.00%

Health

Metric PAYX PTC Software Application median
Debt to equity 1.23 0.41 0.02
Current ratio 1.28 1.03 1.52
Net debt to EBITDA 1.06 0.91 0.06

Dividend

Metric PAYX PTC Software Application median
Dividend yield 4.37% — 0.86%
Payout ratio 0.90 — 0.29

Size

Metric PAYX PTC Software Application median
Market cap 37.19b 21.05b 379.49m

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