Paycom Software, Inc. (PAYC)vsShopify Inc (SHOP)
PAYC
Paycom Software, Inc.
$137.62
+0.39%
TECHNOLOGY · Cap: $6.27B
SHOP
Shopify Inc
$109.54
-5.60%
TECHNOLOGY · Cap: $139.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 491% more annual revenue ($12.37B vs $2.09B). PAYC leads profitability with a 22.4% profit margin vs 10.8%. PAYC appears more attractively valued with a PEG of 0.97. PAYC earns a higher WallStSmart Score of 75/100 (B).
PAYC
Strong Buy75
out of 100
Grade: B
SHOP
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+68.5%
Fair Value
$376.50
Current Price
$137.62
$238.88 discount
Margin of Safety
+18.4%
Fair Value
$143.39
Current Price
$109.54
$33.85 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 58 in profit
Strong operational efficiency at 36.8%
Keeps 22 of every $100 in revenue as profit
Growing faster than its price suggests
Attractively priced relative to earnings
Earnings expanding 22.6% YoY
Revenue surging 34.3% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Weak financial health signals
Distress zone — elevated risk
Expensive relative to growth rate
Trading at 11.4x book value
Weak financial health signals
Premium valuation, high expectations priced in
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 22.4% and operating margin at 36.8%. PEG of 0.97 suggests the stock is reasonably priced for its growth.
Bull Case : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 34.3% demonstrates continued momentum.
Bear Case : PAYC
The primary concerns for PAYC are Piotroski F-Score, Altman Z-Score.
Bear Case : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 105.4x leaves little room for execution misses.
Key Dynamics to Monitor
PAYC profiles as a mature stock while SHOP is a growth play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.59 — expect wider price swings.
SHOP is growing revenue faster at 34.3% — sustainability is the question.
SHOP generates stronger free cash flow (476M), providing more financial flexibility.
Bottom Line
PAYC scores higher overall (75/100 vs 50/100), backed by strong 22.4% margins. SHOP offers better value entry with a 18.4% 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.
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.
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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