Paycom Software, Inc. (PAYC)vsSonos Inc (SONO)
PAYC
Paycom Software, Inc.
$137.62
+0.39%
TECHNOLOGY · Cap: $6.27B
SONO
Sonos Inc
$15.08
-7.20%
TECHNOLOGY · Cap: $1.88B
Smart Verdict
WallStSmart Research — data-driven comparison
Paycom Software, Inc. generates 43% more annual revenue ($2.09B vs $1.46B). PAYC leads profitability with a 22.4% profit margin vs 1.6%. PAYC trades at a lower P/E of 15.6x. PAYC earns a higher WallStSmart Score of 75/100 (B).
PAYC
Strong Buy75
out of 100
Grade: B
SONO
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+68.5%
Fair Value
$376.50
Current Price
$137.62
$238.88 discount
Margin of Safety
-34.6%
Fair Value
$12.26
Current Price
$15.08
$2.82 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 58 in profit
Strong operational efficiency at 36.8%
Keeps 22 of every $100 in revenue as profit
Growing faster than its price suggests
Attractively priced relative to earnings
Earnings expanding 22.6% YoY
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Weak financial health signals
Distress zone — elevated risk
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
1.6% margin — thin
Weak financial health signals
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 22.4% and operating margin at 36.8%. PEG of 0.97 suggests the stock is reasonably priced for its growth.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bear Case : PAYC
The primary concerns for PAYC are Piotroski F-Score, Altman Z-Score.
Bear Case : SONO
The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 92.8x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
PAYC profiles as a mature stock while SONO is a value play — different risk/reward profiles.
SONO carries more volatility with a beta of 1.94 — expect wider price swings.
SONO is growing revenue faster at 8.4% — sustainability is the question.
PAYC generates stronger free cash flow (181M), providing more financial flexibility.
Bottom Line
PAYC scores higher overall (75/100 vs 45/100), backed by strong 22.4% margins. Both earn "Strong Buy" and "Hold" 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.
Sonos Inc
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.
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