Paycom Software, Inc. (PAYC)vsSonos Inc (SONO)
PAYC
Paycom Software, Inc.
$262.79
+0.32%
TECHNOLOGY · Cap: $11.34B
SONO
Sonos Inc
$17.75
-0.67%
TECHNOLOGY · Cap: $2.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Paycom Software, Inc. generates 44% more annual revenue ($2.14B vs $1.49B). PAYC leads profitability with a 22.8% profit margin vs 3.8%. PAYC trades at a lower P/E of 26.8x. PAYC earns a higher WallStSmart Score of 74/100 (B).
PAYC
Strong Buy74
out of 100
Grade: B
SONO
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+74.5%
Fair Value
$465.15
Current Price
$262.79
$202.36 discount
Margin of Safety
-32.2%
Fair Value
$12.48
Current Price
$17.75
$5.27 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 85 in profit
Strong operational efficiency at 31.7%
Keeps 23 of every $100 in revenue as profit
Earnings expanding 48.1% YoY
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Moderate valuation
Trading at 20.0x book value
Elevated debt levels
Weak financial health signals
Premium valuation, high expectations priced in
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Operating margin of 4.4%
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 1.17 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 P/E Ratio, Price/Book, Debt/Equity. Debt-to-equity of 1.72 is elevated, increasing financial risk.
Bear Case : SONO
The primary concerns for SONO are P/E Ratio, Return on Equity, Profit Margin. Thin 3.8% 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 1.88 — expect wider price swings.
PAYC is growing revenue faster at 9.8% — sustainability is the question.
PAYC generates stronger free cash flow (190M), providing more financial flexibility.
Bottom Line
PAYC scores higher overall (74/100 vs 47/100), backed by strong 22.8% 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.
Compare with Other SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?