WallStSmart

Paychex Inc (PAYX)vsSAP SE ADR (SAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SAP SE ADR generates 510% more annual revenue ($36.80B vs $6.03B). PAYX leads profitability with a 26.5% profit margin vs 19.5%. SAP appears more attractively valued with a PEG of 0.79. PAYX earns a higher WallStSmart Score of 64/100 (C+).

PAYX

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 9.5Value: 7.3Quality: 5.5
Piotroski: 3/9Altman Z: 1.32

SAP

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 8.5Value: 7.3Quality: 8.0
Piotroski: 6/9Altman Z: 3.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PAYXSignificantly Overvalued (-212.7%)

Margin of Safety

-212.7%

Fair Value

$30.33

Current Price

$92.55

$62.22 premium

UndervaluedFair: $30.33Overvalued
SAPSignificantly Overvalued (-88.8%)

Margin of Safety

-88.8%

Fair Value

$104.04

Current Price

$175.80

$71.76 premium

UndervaluedFair: $104.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PAYX4 strengths · Avg: 9.3/10
Return on EquityProfitability
40.9%10/10

Every $100 of equity generates 41 in profit

Operating MarginProfitability
41.7%10/10

Strong operational efficiency at 41.7%

Profit MarginProfitability
26.5%9/10

Keeps 27 of every $100 in revenue as profit

Revenue GrowthGrowth
18.3%8/10

18.3% revenue growth

SAP6 strengths · Avg: 8.8/10
Market CapQuality
$217.55B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.0910/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.798/10

Growing faster than its price suggests

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$1.09B8/10

Generating 1.1B in free cash flow

Areas to Watch

PAYX4 concerns · Avg: 3.5/10
PEG RatioValuation
1.744/10

Expensive relative to growth rate

Price/BookValuation
8.6x4/10

Trading at 8.6x book value

Debt/EquityHealth
1.303/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

SAP2 concerns · Avg: 4.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

Revenue GrowthGrowth
3.3%4/10

3.3% revenue growth

Comparative Analysis Report

WallStSmart Research

Bull Case : PAYX

The strongest argument for PAYX centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 26.5% and operating margin at 41.7%. Revenue growth of 18.3% demonstrates continued momentum.

Bull Case : SAP

The strongest argument for SAP centers on Market Cap, Altman Z-Score, Debt/Equity. Profitability is solid with margins at 19.5% and operating margin at 29.2%. PEG of 0.79 suggests the stock is reasonably priced for its growth.

Bear Case : PAYX

The primary concerns for PAYX are PEG Ratio, Price/Book, Debt/Equity.

Bear Case : SAP

The primary concerns for SAP are P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

PAYX profiles as a growth stock while SAP is a value play — different risk/reward profiles.

PAYX carries more volatility with a beta of 0.89 — expect wider price swings.

PAYX is growing revenue faster at 18.3% — sustainability is the question.

SAP generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

PAYX scores higher overall (64/100 vs 58/100), backed by strong 26.5% margins and 18.3% revenue growth. Both earn "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.

Paychex Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Paychex, Inc. is an American provider of human resource, payroll, and benefits outsourcing services for small- to medium-sized businesses.

Visit Website →

SAP SE ADR

TECHNOLOGY · SOFTWARE - APPLICATION · USA

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

Visit Website →

Want to dig deeper into these stocks?