Paycom Software, Inc. (PAYC)vsSynopsys Inc (SNPS)
PAYC
Paycom Software, Inc.
$127.93
+2.49%
TECHNOLOGY · Cap: $6.94B
SNPS
Synopsys Inc
$482.60
+0.29%
TECHNOLOGY · Cap: $92.45B
Smart Verdict
WallStSmart Research — data-driven comparison
Synopsys Inc generates 290% more annual revenue ($8.01B vs $2.05B). PAYC leads profitability with a 22.1% profit margin vs 13.8%. PAYC appears more attractively valued with a PEG of 1.12. PAYC earns a higher WallStSmart Score of 69/100 (B-).
PAYC
Strong Buy69
out of 100
Grade: B-
SNPS
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+72.3%
Fair Value
$428.41
Current Price
$127.93
$300.48 discount
Intrinsic value data unavailable for SNPS.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 27 in profit
Keeps 22 of every $100 in revenue as profit
Attractively priced relative to earnings
Strong operational efficiency at 28.9%
Revenue surging 65.5% year-over-year
Large-cap with strong market position
Areas to Watch
2.1% earnings growth
Weak financial health signals
Distress zone — elevated risk
ROE of 5.5% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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 : SNPS
The strongest argument for SNPS centers on Revenue Growth, Market Cap. Revenue growth of 65.5% demonstrates continued momentum.
Bear Case : PAYC
The primary concerns for PAYC are EPS Growth, Piotroski F-Score, Altman Z-Score.
Bear Case : SNPS
The primary concerns for SNPS are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 74.3x leaves little room for execution misses.
Key Dynamics to Monitor
PAYC profiles as a mature stock while SNPS is a growth play — different risk/reward profiles.
SNPS carries more volatility with a beta of 1.15 — expect wider price swings.
SNPS is growing revenue faster at 65.5% — sustainability is the question.
SNPS generates stronger free cash flow (822M), providing more financial flexibility.
Bottom Line
PAYC scores higher overall (69/100 vs 47/100), backed by strong 22.1% margins and 10.2% revenue growth. Both earn "Strong Buy" and "Hold" 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.
Synopsys Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Synopsys is an American electronic design automation company that focuses on silicon design and verification, silicon intellectual property and software security and quality. Products include logic synthesis, behavioral synthesis, place and route, static timing analysis, formal verification, hardware description language (SystemC, SystemVerilog/Verilog, VHDL) simulators, and transistor-level circuit simulation.
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