WallStSmart

Paylocity Holding Corporation (PCTY)vsSAP SE ADR (SAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SAP SE ADR generates 2062% more annual revenue ($37.34B vs $1.73B). SAP leads profitability with a 19.6% profit margin vs 14.9%. PCTY appears more attractively valued with a PEG of 0.86. PCTY earns a higher WallStSmart Score of 74/100 (B).

PCTY

Strong Buy

74

out of 100

Grade: B

Growth: 8.0Profit: 7.5Value: 8.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.22

SAP

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 8.5Value: 4.7Quality: 6.8
Piotroski: 6/9Altman Z: 3.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PCTYUndervalued (+55.3%)

Margin of Safety

+55.3%

Fair Value

$240.76

Current Price

$113.46

$127.30 discount

UndervaluedFair: $240.76Overvalued
SAPSignificantly Overvalued (-34.7%)

Margin of Safety

-34.7%

Fair Value

$145.83

Current Price

$184.77

$38.94 premium

UndervaluedFair: $145.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PCTY5 strengths · Avg: 8.8/10
Operating MarginProfitability
31.2%10/10

Strong operational efficiency at 31.2%

Return on EquityProfitability
21.9%9/10

Every $100 of equity generates 22 in profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.868/10

Growing faster than its price suggests

EPS GrowthGrowth
27.3%8/10

Earnings expanding 27.3% YoY

SAP4 strengths · Avg: 9.3/10
Operating MarginProfitability
30.0%10/10

Strong operational efficiency at 30.0%

Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

Market CapQuality
$192.92B9/10

Large-cap with strong market position

Free Cash FlowQuality
$3.27B8/10

Generating 3.3B in free cash flow

Areas to Watch

PCTY1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
1.222/10

Distress zone — elevated risk

SAP0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : PCTY

The strongest argument for PCTY centers on Operating Margin, Return on Equity, Debt/Equity. Revenue growth of 10.5% demonstrates continued momentum. PEG of 0.86 suggests the stock is reasonably priced for its growth.

Bull Case : SAP

The strongest argument for SAP centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.6% and operating margin at 30.0%. PEG of 1.44 suggests the stock is reasonably priced for its growth.

Bear Case : PCTY

The primary concerns for PCTY are Altman Z-Score.

Bear Case : SAP

No major red flags identified for SAP, but monitor valuation.

Key Dynamics to Monitor

PCTY profiles as a value stock while SAP is a mature play — different risk/reward profiles.

SAP carries more volatility with a beta of 0.73 — expect wider price swings.

PCTY is growing revenue faster at 10.5% — sustainability is the question.

SAP generates stronger free cash flow (3.3B), providing more financial flexibility.

Bottom Line

PCTY scores higher overall (74/100 vs 59/100) and 10.5% revenue growth. 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.

Paylocity Holding Corporation

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Paylocity Holding Corporation provides cloud-based payroll and human capital management software solutions for midsize organizations in the United States. The company is headquartered in Schaumburg, Illinois.

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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