Paycom Software (PAYC) vs. Advent Software (ADVS) Critical Contrast

Advent Software (NASDAQ: ADVS) and Paycom Software (NYSE:PAYC) are both mid-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for Advent Software and Paycom Software, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advent Software 0 0 0 0 N/A
Paycom Software 0 4 12 0 2.75

Paycom Software has a consensus price target of $89.63, indicating a potential downside of 5.56%. Given Paycom Software’s higher probable upside, analysts plainly believe Paycom Software is more favorable than Advent Software.

Insider and Institutional Ownership

87.1% of Paycom Software shares are owned by institutional investors. 17.9% of Paycom Software shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Advent Software has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Paycom Software has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Profitability

This table compares Advent Software and Paycom Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Advent Software 4.92% N/A 4.74%
Paycom Software 15.43% 46.27% 5.76%

Valuation & Earnings

This table compares Advent Software and Paycom Software’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Advent Software N/A N/A N/A $0.82 53.95
Paycom Software $433.05 million 12.97 $66.81 million $1.13 83.98

Paycom Software has higher revenue and earnings than Advent Software. Advent Software is trading at a lower price-to-earnings ratio than Paycom Software, indicating that it is currently the more affordable of the two stocks.

Summary

Paycom Software beats Advent Software on 11 of the 11 factors compared between the two stocks.

Advent Software Company Profile

Advent Software, Inc. (Advent) is a provider of software products and services. The Company offers software products and services for automating and integrating data and work flows across the investment management organization, as well as between the investment management organization and external parties. The Company is engaged in the development and marketing of software products, software-as-a-service, hosting services, data interfaces, and related maintenance and services that automate, integrate and support investment management organizations around the world. The Company has a cloud platform, Advent Direct, and a portfolio management platform, Geneva. The Company’s products include Advent Portfolio Exchange, Black Diamond, Axys, Moxy, Advent Rules Manager, Tamale RMS, Syncova calculation solutions, Tradex and Advent General Ledger Exchange. It also offers Data and Data Integration Services, Maintenance and Support Services, Professional Services and an Alliance Program.

Paycom Software Company Profile

Paycom Software, Inc. is a provider of a cloud-based human capital management (HCM) software solution delivered as Software-as-a-Service (SaaS). The Company provides functionality and data analytics that businesses need to manage the complete employment life cycle from recruitment to retirement. The Company’s applications streamline client processes and provide clients and their employees with the ability to directly access and manage administrative processes, including applications that identify candidates, on-board employees, manage time and labor, administer payroll deductions and benefits, manage performance, terminate employees and administer post-termination health benefits, such as COBRA. The Company’s solution allows clients to analyze employee information to make business decisions. The Company’s HCM solution offers a range of applications, including talent acquisition, time and labor management, payroll, talent management and human resources (HR) management.

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