Paycom Software, Inc. (PAYC)vsSAP SE ADR (SAP)
PAYC
Paycom Software, Inc.
$262.79
+0.32%
TECHNOLOGY · Cap: $11.34B
SAP
SAP SE ADR
$236.93
+0.48%
TECHNOLOGY · Cap: $272.16B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 1740% more annual revenue ($39.39B vs $2.14B). PAYC leads profitability with a 22.8% profit margin vs 20.4%. PAYC appears more attractively valued with a PEG of 1.17. PAYC earns a higher WallStSmart Score of 74/100 (B).
PAYC
Strong Buy74
out of 100
Grade: B
SAP
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+74.5%
Fair Value
$465.15
Current Price
$262.79
$202.36 discount
Margin of Safety
-25.6%
Fair Value
$156.37
Current Price
$236.93
$80.56 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 85 in profit
Strong operational efficiency at 31.7%
Keeps 23 of every $100 in revenue as profit
Earnings expanding 48.1% YoY
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Keeps 20 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Generating 1.7B in free cash flow
Areas to Watch
Moderate valuation
Trading at 20.0x book value
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Moderate valuation
Trading at 74.3x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : PAYC
The strongest argument for PAYC centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 22.8% and operating margin at 31.7%. PEG of 1.17 suggests the stock is reasonably priced for its growth.
Bull Case : SAP
The strongest argument for SAP centers on Market Cap, Altman Z-Score, Profit Margin. Profitability is solid with margins at 20.4% and operating margin at 29.5%. Revenue growth of 13.2% demonstrates continued momentum.
Bear Case : PAYC
The primary concerns for PAYC are P/E Ratio, Price/Book, Debt/Equity. Debt-to-equity of 1.72 is elevated, increasing financial risk.
Bear Case : SAP
The primary concerns for SAP are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
PAYC carries more volatility with a beta of 0.83 — expect wider price swings.
SAP is growing revenue faster at 13.2% — sustainability is the question.
SAP generates stronger free cash flow (1.7B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PAYC scores higher overall (74/100 vs 60/100), backed by strong 22.8% margins. 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.
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