Financial Comparison: Kingdee International Software Group (OTCMKTS:KGDEY) and Paylocity (NASDAQ:PCTY)

Kingdee International Software Group (OTCMKTS:KGDEY) and Paylocity (NASDAQ:PCTY) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings for Kingdee International Software Group and Paylocity, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingdee International Software Group	0	0	0	1	4.00
Paylocity	1	5	15	0	2.67

Paylocity has a consensus target price of $180.05, indicating a potential upside of 52.65%. Given Paylocity’s higher probable upside, analysts plainly believe Paylocity is more favorable than Kingdee International Software Group.

Volatility and Risk

Kingdee International Software Group has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Paylocity has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.

Profitability

This table compares Kingdee International Software Group and Paylocity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kingdee International Software Group	N/A	N/A	N/A
Paylocity	14.19%	23.44%	5.24%

Institutional & Insider Ownership

94.8% of Paylocity shares are owned by institutional investors. 19.4% of Paylocity shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Kingdee International Software Group and Paylocity”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingdee International Software Group	$870.22 million	5.29	-$19.76 million	N/A	N/A
Paylocity	$1.60 billion	3.98	$227.13 million	$4.25	27.75

Paylocity has higher revenue and earnings than Kingdee International Software Group.

Summary

Paylocity beats Kingdee International Software Group on 10 of the 13 factors compared between the two stocks.

About Kingdee International Software Group

Kingdee International Software Group Company Limited, an investment holding company, engages in the enterprise resource planning business. The company operates through ERP Business and Others, Cloud Services Business, and Investment Properties Operating Business segments. The ERP Business and Others segment sells software and hardware products; and provides software solution consulting, maintenance, upgrade, and other supporting services, as well as software implementation services. The Cloud Services Business segment provides enterprise, finance, industry, and other cloud services. The Investment Properties Operating Business segment invests in properties and office buildings. The company also designs, develops, manufactures, and sells software and hardware products; provides software-related and online financial services; and develops Internet and online pay technologies. It serves enterprises, government agencies, and other organizations worldwide. Kingdee International Software Group Company Limited was founded in 1993 and is headquartered in Shenzhen, the People's Republic of China.

About Paylocity

Paylocity Holding Corporation engages in the provision of cloud-based human capital management and payroll software solutions for workforce in the United States. The company offers payroll software solution for global payroll, expense management, tax services, on demand payment, and garnishment managed services; and time and labor management software for time and attendance, scheduling, and time collection. It also provides human resources (HR) software solutions for employee self-service, compliance, HR edge, data analytics, and workflows and documents, as well as human resource management system; talent management system for recruiting, onboarding, performance, compensation, and learning; and benefits administration software. In addition, the company offers employee experience platform for community, employee voice, recognition and rewards, video, and modern workforce index; HR reporting software; and mobile HR solutions. Further, it provides implementation and training, client, and tax and regulatory services. The company serves for-profit and non-profit organizations across industries, including business services, financial services, healthcare, manufacturing, restaurants, retail, technology, and others. It sells its products through sales representatives. The company was founded in 1997 and is headquartered in Schaumburg, Illinois.