Advent Software (NASDAQ: ADVS) and Paycom Software (NYSE:PAYC) are both mid-cap enterprise software companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
Earnings & Valuation
This table compares Advent Software and Paycom Software’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Paycom Software||$433.05 million||15.20||$66.80 million||$1.13||98.45|
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.
This is a summary of recent ratings and recommmendations for Advent Software and Paycom Software, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Paycom Software has a consensus target price of $91.00, suggesting a potential downside of 18.20%. Given Paycom Software’s higher probable upside, analysts clearly believe Paycom Software is more favorable than Advent Software.
Volatility & Risk
Advent Software has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Paycom Software has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.
Institutional & Insider Ownership
87.7% of Paycom Software shares are held by institutional investors. 17.9% of Paycom Software shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
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|
Paycom Software beats Advent Software on 11 of the 11 factors compared between the two stocks.
About Advent Software
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.
About Paycom Software
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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