Paylocity Holding Corporation (PCTY) vs Ringcentral, Inc. (RNG)

Paylocity Holding Corporation and Ringcentral, Inc. are both Software Application companies. Paylocity Holding Corporation is the larger, with a market value of $7.6B against $6.7B — 1.1× the size. Paylocity Holding Corporation trades at the lower P/E: 28.6× against 59.0×. Paylocity Holding Corporation grew revenue faster over the last twelve months: 11.0% against 5.22%. Paylocity Holding Corporation has the higher net margin (15.2% vs 4.27%) and the lower return on invested capital (23.4% vs 27.2%). Across the 21 metrics below, Ringcentral, Inc. leads on 11 and Paylocity Holding Corporation on 10.

Valuation

Metric PCTY RNG Software Application median
P/E 28.62 59.04 24.79
P/S 4.37 2.48 2.67
P/B 6.34 n/m 3.01
Price to free cash flow 18.09 11.15 16.59
EV/EBITDA 16.84 13.13 14.40
EV/Sales 4.26 2.87 2.62
Earnings yield 3.49% 1.69% 0.00%
Free cash flow yield 5.53% 8.97% 1.91%

Profitability

Metric PCTY RNG Software Application median
Gross margin 69.19% 71.83% 67.03%
Operating margin 21.79% 6.72% 0.00%
Net margin 15.23% 4.27% 0.00%
Free cash flow margin 24.15% 22.31% 4.32%
Return on equity 21.97% (20.10%) 0.00%
Return on assets 5.82% 7.38% 0.00%
Return on invested capital 23.40% 27.20% 0.00%

Growth

Metric PCTY RNG Software Application median
Revenue growth (TTM) 11.04% 5.22% 12.40%
EPS growth (last fiscal year) 22.39% 176.19% —
Revenue growth, 5-year CAGR 22.75% 16.27% 13.72%
Net income growth, 5-year CAGR 30.89% 0.00% 0.00%

Health

Metric PCTY RNG Software Application median
Debt to equity 0.07 (1.84) 0.02
Current ratio 1.09 1.11 1.55
Net debt to EBITDA (0.43) 2.19 0.06

Dividend

Metric PCTY RNG Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric PCTY RNG Software Application median
Market cap 7.56b 6.67b 396.11m

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