Paylocity Holding Corporation (NASDAQ: PCTY) and Amber Road (NYSE:AMBR) are both software – nec companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.
Institutional & Insider Ownership
59.4% of Paylocity Holding Corporation shares are owned by institutional investors. Comparatively, 71.6% of Amber Road shares are owned by institutional investors. 48.8% of Paylocity Holding Corporation shares are owned by company insiders. Comparatively, 13.1% of Amber Road shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
Paylocity Holding Corporation has a beta of 2.24, indicating that its stock price is 124% more volatile than the S&P 500. Comparatively, Amber Road has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Paylocity Holding Corporation and Amber Road, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Paylocity Holding Corporation||0||5||9||0||2.64|
Paylocity Holding Corporation currently has a consensus target price of $52.92, indicating a potential upside of 9.45%. Amber Road has a consensus target price of $12.00, indicating a potential upside of 85.19%. Given Amber Road’s stronger consensus rating and higher possible upside, analysts clearly believe Amber Road is more favorable than Paylocity Holding Corporation.
This table compares Paylocity Holding Corporation and Amber Road’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Paylocity Holding Corporation||3.11%||7.98%||0.93%|
Earnings and Valuation
This table compares Paylocity Holding Corporation and Amber Road’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Paylocity Holding Corporation||$300.01 million||8.46||$6.71 million||$0.18||268.61|
|Amber Road||$73.16 million||2.41||-$18.72 million||($0.57)||-11.37|
Paylocity Holding Corporation has higher revenue and earnings than Amber Road. Amber Road is trading at a lower price-to-earnings ratio than Paylocity Holding Corporation, indicating that it is currently the more affordable of the two stocks.
Paylocity Holding Corporation beats Amber Road on 10 of the 13 factors compared between the two stocks.
About Paylocity Holding Corporation
Paylocity Holding Corporation is a cloud-based provider of payroll and human capital management (HCM), software solutions for medium-sized organizations. The Company’s services are provided in a software-as-a-service delivery model utilizing its cloud-based platform. The cloud-based platform provides a suite of applications using a multi-tenant architecture. The cloud-based platform features a suite of unified payroll and HCM applications. The Company, through cloud-based platform, offers various products, which include Paylocity Web Pay, Paylocity HR, Paylocity Affordable Care Act Enhanced, Paylocity Impressions, Performance Management, Self-Service HR Portals, Paylocity Recruiting, Paylocity Web Time, Paylocity Web Onboarding, and Paylocity Web Benefits and Paylocity Enterprise Benefits, Powered by bswift. The multi-tenant software platform is configurable and includes a unified suite of payroll and HCM applications, such as time and labor tracking, benefits and talent management.
About Amber Road
Amber Road, Inc. is a provider of cloud-based global trade management (GTM) solutions. The Company’s GTM solutions include modules for logistics contract and rate management, supply chain visibility and event management, international trade compliance, and Global Knowledge trade content database to importers and exporters, non-vessel owning common carriers (resellers), and ocean carriers. The Company delivers its GTM solution using a software-as-a-service (SaaS) model. The Company’s solution automates the global supply chain across sourcing, logistics, cross-border trade and regulatory compliance activities. The Company’s GTM solution combines enterprise-class software, trade content sourced from government agencies and transportation providers in approximately 145 countries, and a global supply chain network connecting its customers with the trading partners, including suppliers, freight forwarders, customs brokers and transportation carriers.
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