WallStSmart

Paycom Software, Inc. (PAYC)vsSAP SE ADR (SAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SAP SE ADR generates 1684% more annual revenue ($37.34B vs $2.09B). PAYC leads profitability with a 22.4% profit margin vs 19.6%. PAYC appears more attractively valued with a PEG of 0.97. PAYC earns a higher WallStSmart Score of 75/100 (B).

PAYC

Strong Buy

75

out of 100

Grade: B

Growth: 7.3Profit: 8.5Value: 8.7Quality: 4.5
Piotroski: 2/9Altman Z: 1.21

SAP

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 8.5Value: 4.7Quality: 6.8
Piotroski: 6/9Altman Z: 3.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PAYCUndervalued (+68.5%)

Margin of Safety

+68.5%

Fair Value

$376.50

Current Price

$137.62

$238.88 discount

UndervaluedFair: $376.50Overvalued
SAPSignificantly Overvalued (-34.7%)

Margin of Safety

-34.7%

Fair Value

$145.83

Current Price

$184.77

$38.94 premium

UndervaluedFair: $145.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PAYC6 strengths · Avg: 8.8/10
Return on EquityProfitability
57.9%10/10

Every $100 of equity generates 58 in profit

Operating MarginProfitability
36.8%10/10

Strong operational efficiency at 36.8%

Profit MarginProfitability
22.4%9/10

Keeps 22 of every $100 in revenue as profit

PEG RatioValuation
0.978/10

Growing faster than its price suggests

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
22.6%8/10

Earnings expanding 22.6% YoY

SAP4 strengths · Avg: 9.3/10
Operating MarginProfitability
30.0%10/10

Strong operational efficiency at 30.0%

Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

Market CapQuality
$192.92B9/10

Large-cap with strong market position

Free Cash FlowQuality
$3.27B8/10

Generating 3.3B in free cash flow

Areas to Watch

PAYC2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
1.212/10

Distress zone — elevated risk

SAP0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : PAYC

The strongest argument for PAYC centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 22.4% and operating margin at 36.8%. PEG of 0.97 suggests the stock is reasonably priced for its growth.

Bull Case : SAP

The strongest argument for SAP centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.6% and operating margin at 30.0%. PEG of 1.44 suggests the stock is reasonably priced for its growth.

Bear Case : PAYC

The primary concerns for PAYC are Piotroski F-Score, Altman Z-Score.

Bear Case : SAP

No major red flags identified for SAP, but monitor valuation.

Key Dynamics to Monitor

PAYC carries more volatility with a beta of 0.79 — expect wider price swings.

PAYC is growing revenue faster at 7.8% — sustainability is the question.

SAP generates stronger free cash flow (3.3B), providing more financial flexibility.

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PAYC scores higher overall (75/100 vs 59/100), backed by strong 22.4% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Paycom Software, Inc.

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Paycom Software, Inc., known simply as Paycom, is an American online payroll and human resource technology provider based in Oklahoma City, Oklahoma.

SAP SE ADR

TECHNOLOGY · SOFTWARE - APPLICATION · USA

SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.

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