Paylocity Holding Corporation (PCTY)vsShopify Inc (SHOP)
PCTY
Paylocity Holding Corporation
$141.66
-0.84%
TECHNOLOGY · Cap: $7.95B
SHOP
Shopify Inc
$128.79
+1.73%
TECHNOLOGY · Cap: $188.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 649% more annual revenue ($13.27B vs $1.77B). PCTY leads profitability with a 15.2% profit margin vs 14.5%. PCTY appears more attractively valued with a PEG of 1.23. PCTY earns a higher WallStSmart Score of 65/100 (B-).
PCTY
Strong Buy65
out of 100
Grade: B-
SHOP
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+62.0%
Fair Value
$283.03
Current Price
$141.66
$141.37 discount
Margin of Safety
+22.9%
Fair Value
$151.66
Current Price
$128.79
$22.87 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 22 in profit
Conservative balance sheet, low leverage
Earnings expanding 27.6% YoY
Revenue surging 33.7% year-over-year
Earnings expanding 68.1% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Moderate valuation
Distress zone — elevated risk
Trading at 13.1x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : PCTY
The strongest argument for PCTY centers on Return on Equity, Debt/Equity, EPS Growth. Profitability is solid with margins at 15.2% and operating margin at 19.1%. Revenue growth of 11.0% demonstrates continued momentum.
Bull Case : SHOP
The strongest argument for SHOP centers on Revenue Growth, EPS Growth, Debt/Equity. Revenue growth of 33.7% demonstrates continued momentum.
Bear Case : PCTY
The primary concerns for PCTY are P/E Ratio, Altman Z-Score.
Bear Case : SHOP
The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 98.0x leaves little room for execution misses.
Key Dynamics to Monitor
PCTY profiles as a mature stock while SHOP is a growth play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.62 — expect wider price swings.
SHOP is growing revenue faster at 33.7% — sustainability is the question.
SHOP generates stronger free cash flow (654M), providing more financial flexibility.
Bottom Line
PCTY scores higher overall (65/100 vs 62/100), backed by strong 15.2% margins and 11.0% revenue growth. SHOP offers better value entry with a 22.9% margin of safety. 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.
Shopify Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
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