Paycom Software, Inc. (PAYC)vsSAP SE ADR (SAP)
PAYC
Paycom Software, Inc.
$218.91
+1.33%
TECHNOLOGY · Cap: $9.88B
SAP
SAP SE ADR
$206.36
+0.20%
TECHNOLOGY · Cap: $248.28B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 1684% more annual revenue ($38.19B vs $2.14B). PAYC leads profitability with a 22.8% profit margin vs 20.4%. PAYC appears more attractively valued with a PEG of 1.23. PAYC earns a higher WallStSmart Score of 72/100 (B).
PAYC
Strong Buy72
out of 100
Grade: B
SAP
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+74.8%
Fair Value
$470.99
Current Price
$218.91
$252.08 discount
Margin of Safety
-30.1%
Fair Value
$151.01
Current Price
$206.36
$55.35 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 58 in profit
Strong operational efficiency at 31.7%
Keeps 23 of every $100 in revenue as profit
Earnings expanding 48.1% YoY
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Keeps 20 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 27.6%
Earnings expanding 30.6% YoY
Areas to Watch
Trading at 16.7x book value
Elevated debt levels
Weak financial health signals
Distress zone — elevated risk
Expensive relative to growth rate
Moderate valuation
Trading at 64.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : PAYC
The strongest argument for PAYC centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 22.8% and operating margin at 31.7%. PEG of 1.23 suggests the stock is reasonably priced for its growth.
Bull Case : SAP
The strongest argument for SAP centers on Market Cap, Altman Z-Score, Profit Margin. Profitability is solid with margins at 20.4% and operating margin at 27.6%.
Bear Case : PAYC
The primary concerns for PAYC are Price/Book, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.72 is elevated, increasing financial risk.
Bear Case : SAP
The primary concerns for SAP are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
PAYC carries more volatility with a beta of 0.79 — expect wider price swings.
PAYC is growing revenue faster at 9.8% — sustainability is the question.
SAP generates stronger free cash flow (3.0B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PAYC scores higher overall (72/100 vs 64/100), backed by strong 22.8% 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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