Paychex, Inc. (PAYX) vs SS&C Technologies Holdings, Inc. (SSNC)

Paychex, Inc. and SS&C Technologies Holdings, Inc. are both Software Application companies. Paychex, Inc. is the larger, with a market value of $36.0B against $18.6B — 1.9× the size. Paychex, Inc. trades at the lower P/E: 20.1× against 21.9×. Paychex, Inc. grew revenue faster over the last twelve months: 14.0% against 8.57%. Paychex, Inc. has the higher net margin (27.4% vs 13.2%) and the higher return on invested capital (22.2% vs 6.99%). Both pay a dividend; Paychex, Inc. yields more (2.84% vs 1.43%). Across the 23 metrics below, Paychex, Inc. leads on 16 and SS&C Technologies Holdings, Inc. on 7.

Valuation

Metric PAYX SSNC Software Application median
P/E 20.08 21.90 24.79
P/S 5.46 2.85 2.67
P/B 9.73 2.79 3.01
Price to free cash flow 17.88 12.29 16.59
EV/EBITDA 12.53 11.36 14.40
EV/Sales 6.06 3.94 2.62
Earnings yield 4.98% 4.57% 0.00%
Free cash flow yield 5.59% 8.14% 1.91%

Profitability

Metric PAYX SSNC Software Application median
Gross margin 74.39% 48.10% 67.03%
Operating margin 39.19% 23.61% 0.00%
Net margin 27.35% 13.16% 0.00%
Free cash flow margin 30.54% 23.21% 4.32%
Return on equity 47.06% 12.59% 0.00%
Return on assets 11.17% 4.36% 0.00%
Return on invested capital 22.23% 6.99% 0.00%

Growth

Metric PAYX SSNC Software Application median
Revenue growth (TTM) 13.97% 8.57% 12.40%
EPS growth (last fiscal year) 6.77% 5.00% —
Revenue growth, 5-year CAGR 9.93% 6.09% 13.72%
Net income growth, 5-year CAGR 9.91% 4.97% 0.00%

Health

Metric PAYX SSNC Software Application median
Debt to equity 1.23 1.13 0.02
Current ratio 1.28 1.06 1.55
Net debt to EBITDA 1.06 3.24 0.06

Dividend

Metric PAYX SSNC Software Application median
Dividend yield 2.84% 1.43% 1.25%
Payout ratio 0.76 0.33 0.00

Size

Metric PAYX SSNC Software Application median
Market cap 36.03b 18.57b 396.11m

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