Paychex, Inc. (PAYX) vs Roper Technologies, Inc. (ROP)

Paychex, Inc. and Roper Technologies, Inc. are both Software Application companies. Roper Technologies, Inc. is the larger, with a market value of $48.6B against $42.5B — 1.1× the size. Roper Technologies, Inc. trades at the lower P/E: 19.3× against 23.6×. Paychex, Inc. grew revenue faster over the last twelve months: 14.0% against 9.24%. Roper Technologies, Inc. has the higher net margin (30.7% vs 27.4%) and the lower return on invested capital (5.17% vs 22.2%). Both pay a dividend; Paychex, Inc. yields more (4.81% vs 0.74%). Across the 23 metrics below, Paychex, Inc. leads on 12 and Roper Technologies, Inc. on 11.

Valuation

Metric PAYX ROP Software Application median
P/E 23.59 19.32 25.90
P/S 6.42 5.76 3.04
P/B 11.44 2.53 2.60
Price to free cash flow 21.02 19.32 17.17
EV/EBITDA 14.14 17.54 15.48
EV/Sales 7.02 6.87 2.89
Earnings yield 4.24% 5.18% 0.00%
Free cash flow yield 4.76% 5.18% 1.98%

Profitability

Metric PAYX ROP Software Application median
Gross margin 74.39% 69.67% 66.89%
Operating margin 39.19% 28.05% 0.00%
Net margin 27.35% 30.71% 0.00%
Free cash flow margin 30.54% 29.80% 5.77%
Return on equity 47.06% 13.23% 0.00%
Return on assets 11.17% 7.52% 0.00%
Return on invested capital 22.23% 5.17% 0.00%

Growth

Metric PAYX ROP Software Application median
Revenue growth (TTM) 13.97% 9.24% 12.27%
EPS growth (last fiscal year) 6.77% (1.05%) 32.11%
Revenue growth, 5-year CAGR 9.93% 14.46% 14.34%
Net income growth, 5-year CAGR 9.91% 10.10% 0.00%

Health

Metric PAYX ROP Software Application median
Debt to equity 1.23 0.51 0.02
Current ratio 1.28 0.43 1.53
Net debt to EBITDA 1.06 2.86 0.09

Dividend

Metric PAYX ROP Software Application median
Dividend yield 4.81% 0.74% 1.10%
Payout ratio 1.14 0.14 0.28

Size

Metric PAYX ROP Software Application median
Market cap 42.54b 48.62b 487.58m

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