Paycom Software, Inc. (PAYC)vsSonos Inc (SONO)
PAYC
Paycom Software, Inc.
$127.93
+2.49%
TECHNOLOGY · Cap: $6.94B
SONO
Sonos Inc
$14.67
+1.31%
TECHNOLOGY · Cap: $1.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Paycom Software, Inc. generates 43% more annual revenue ($2.05B vs $1.44B). PAYC leads profitability with a 22.1% profit margin vs -1.2%. PAYC earns a higher WallStSmart Score of 69/100 (B-).
PAYC
Strong Buy69
out of 100
Grade: B-
SONO
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+72.3%
Fair Value
$428.41
Current Price
$127.93
$300.48 discount
Margin of Safety
+42.1%
Fair Value
$28.49
Current Price
$14.67
$13.82 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 27 in profit
Keeps 22 of every $100 in revenue as profit
Attractively priced relative to earnings
Strong operational efficiency at 28.9%
Earnings expanding 87.5% YoY
Areas to Watch
2.1% earnings growth
Weak financial health signals
Distress zone — elevated risk
Smaller company, higher risk/reward
ROE of -3.9% — below average capital efficiency
Revenue declined 0.9%
Currently unprofitable
Comparative Analysis Report
WallStSmart ResearchBull Case : PAYC
The strongest argument for PAYC centers on Return on Equity, Profit Margin, P/E Ratio. Profitability is solid with margins at 22.1% and operating margin at 28.9%. Revenue growth of 10.2% demonstrates continued momentum.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth.
Bear Case : PAYC
The primary concerns for PAYC are EPS Growth, Piotroski F-Score, Altman Z-Score.
Bear Case : SONO
The primary concerns for SONO are Market Cap, Return on Equity, Revenue Growth.
Key Dynamics to Monitor
PAYC profiles as a mature stock while SONO is a turnaround play — different risk/reward profiles.
SONO carries more volatility with a beta of 2.00 — expect wider price swings.
PAYC is growing revenue faster at 10.2% — sustainability is the question.
SONO generates stronger free cash flow (157M), providing more financial flexibility.
Bottom Line
PAYC scores higher overall (69/100 vs 42/100), backed by strong 22.1% margins and 10.2% revenue growth. SONO offers better value entry with a 42.1% margin of safety. 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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