Paychex, Inc. (PAYX) vs Workday, Inc. (WDAY)

Paychex, Inc. and Workday, Inc. are both Software Application companies. Workday, Inc. is the larger, with a market value of $46.1B against $36.0B — 1.3× the size. Paychex, Inc. trades at the lower P/E: 20.1× against 38.2×. Paychex, Inc. grew revenue faster over the last twelve months: 14.0% against 13.4%. Paychex, Inc. has the higher net margin (27.4% vs 12.3%) and the higher return on invested capital (22.2% vs 11.2%). Across the 22 metrics below, Paychex, Inc. leads on 12 and Workday, Inc. on 10.

Valuation

Metric PAYX WDAY Software Application median
P/E 20.08 38.16 24.79
P/S 5.46 4.57 2.67
P/B 9.73 7.18 3.01
Price to free cash flow 17.88 16.33 16.59
EV/EBITDA 12.53 26.07 14.40
EV/Sales 6.06 4.53 2.62
Earnings yield 4.98% 2.62% 0.00%
Free cash flow yield 5.59% 6.12% 1.91%

Profitability

Metric PAYX WDAY Software Application median
Gross margin 74.39% 75.80% 67.03%
Operating margin 39.19% 10.68% 0.00%
Net margin 27.35% 12.32% 0.00%
Free cash flow margin 30.54% 28.01% 4.32%
Return on equity 47.06% 16.01% 0.00%
Return on assets 11.17% 7.40% 0.00%
Return on invested capital 22.23% 11.22% 0.00%

Growth

Metric PAYX WDAY Software Application median
Revenue growth (TTM) 13.97% 13.35% 12.40%
EPS growth (last fiscal year) 6.77% 32.82% —
Revenue growth, 5-year CAGR 9.93% 17.21% 13.72%
Net income growth, 5-year CAGR 9.91% 0.00% 0.00%

Health

Metric PAYX WDAY Software Application median
Debt to equity 1.23 0.46 0.02
Current ratio 1.28 0.91 1.55
Net debt to EBITDA 1.06 (1.81) 0.06

Dividend

Metric PAYX WDAY Software Application median
Dividend yield 2.84% — 1.25%
Payout ratio 0.76 0.00 0.00

Size

Metric PAYX WDAY Software Application median
Market cap 36.03b 46.09b 396.11m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack