WallStSmart

Paycom Software, Inc. (PAYC)vsSAP SE ADR (SAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SAP SE ADR generates 1694% more annual revenue ($36.80B vs $2.05B). PAYC leads profitability with a 22.1% profit margin vs 19.5%. SAP appears more attractively valued with a PEG of 0.79. PAYC earns a higher WallStSmart Score of 69/100 (B-).

PAYC

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 8.5Value: 7.3Quality: 4.3
Piotroski: 2/9Altman Z: 1.45

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

PAYCSignificantly Overvalued (-44.6%)

Margin of Safety

-44.6%

Fair Value

$82.09

Current Price

$119.82

$37.73 premium

UndervaluedFair: $82.09Overvalued
SAPSignificantly Overvalued (-88.8%)

Margin of Safety

-88.8%

Fair Value

$104.04

Current Price

$168.95

$64.91 premium

UndervaluedFair: $104.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PAYC4 strengths · Avg: 8.5/10
Return on EquityProfitability
27.4%9/10

Every $100 of equity generates 27 in profit

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

P/E RatioValuation
14.7x8/10

Attractively priced relative to earnings

Operating MarginProfitability
28.9%8/10

Strong operational efficiency at 28.9%

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

PAYC3 concerns · Avg: 3.0/10
EPS GrowthGrowth
2.1%4/10

2.1% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
1.452/10

Distress zone — elevated risk

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 : 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 : 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 : PAYC

The primary concerns for PAYC are EPS Growth, Piotroski F-Score, Altman Z-Score.

Bear Case : SAP

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

Key Dynamics to Monitor

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

PAYC carries more volatility with a beta of 0.81 — expect wider price swings.

PAYC is growing revenue faster at 10.2% — sustainability is the question.

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

Bottom Line

PAYC scores higher overall (69/100 vs 58/100), backed by strong 22.1% margins and 10.2% 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.

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.

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?