Paylocity Holding Corporation (PCTY) vs ServiceTitan Inc. (TTAN)

Paylocity Holding Corporation and ServiceTitan Inc. are both Software Application companies. Paylocity Holding Corporation is the larger, with a market value of $8.8B against $7.3B — 1.2× the size. ServiceTitan Inc. has negative trailing earnings, so its P/E is not meaningful; Paylocity Holding Corporation trades at 33.3×. ServiceTitan Inc. grew revenue faster over the last twelve months: 22.9% against 11.0%. Paylocity Holding Corporation has the higher net margin (15.2% vs −12.1%) and the higher return on invested capital (23.4% vs −7.67%). Across the 18 metrics below, Paylocity Holding Corporation leads on 12 and ServiceTitan Inc. on 6.

Valuation

Metric PCTY TTAN Software Application median
P/E 33.26 n/m 25.41
P/S 5.08 6.75 2.73
P/B 7.36 4.48 2.57
Price to free cash flow 21.03 63.06 17.58
EV/EBITDA 19.64 n/m 15.36
EV/Sales 4.97 6.40 2.59
Earnings yield 3.01% (1.81%) 0.00%
Free cash flow yield 4.76% 1.59% 2.24%

Profitability

Metric PCTY TTAN Software Application median
Gross margin 69.19% 71.08% 67.03%
Operating margin 21.79% (12.98%) 0.00%
Net margin 15.23% (12.12%) 0.00%
Free cash flow margin 24.15% 10.71% 5.01%
Return on equity 21.97% (8.34%) 0.00%
Return on assets 5.82% (7.19%) 0.00%
Return on invested capital 23.40% (7.67%) 0.00%

Growth

Metric PCTY TTAN Software Application median
Revenue growth (TTM) 11.04% 22.90% 12.48%
EPS growth (last fiscal year) 22.39% 79.72% 32.26%
Revenue growth, 5-year CAGR 22.75% — 14.21%
Net income growth, 5-year CAGR 30.89% — 0.00%

Health

Metric PCTY TTAN Software Application median
Debt to equity 0.07 0.00 0.02
Current ratio 1.09 4.55 1.52
Net debt to EBITDA (0.43) 6.07 0.08

Dividend

Metric PCTY TTAN Software Application median
Dividend yield — — 0.95%
Payout ratio — — 0.29

Size

Metric PCTY TTAN Software Application median
Market cap 8.82b 7.34b 357.77m

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