Paycom Software, Inc. (PAYC)vsSonos Inc (SONO)
PAYC
Paycom Software, Inc.
$218.91
+1.33%
TECHNOLOGY · Cap: $9.88B
SONO
Sonos Inc
$15.12
+3.35%
TECHNOLOGY · Cap: $1.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Paycom Software, Inc. generates 44% more annual revenue ($2.14B vs $1.49B). PAYC leads profitability with a 22.8% profit margin vs 3.8%. PAYC trades at a lower P/E of 23.2x. PAYC earns a higher WallStSmart Score of 72/100 (B).
PAYC
Strong Buy72
out of 100
Grade: B
SONO
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+74.8%
Fair Value
$470.99
Current Price
$218.91
$252.08 discount
Margin of Safety
-31.9%
Fair Value
$12.51
Current Price
$15.12
$2.61 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 58 in profit
Strong operational efficiency at 31.7%
Keeps 23 of every $100 in revenue as profit
Earnings expanding 48.1% YoY
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Trading at 16.7x book value
Elevated debt levels
Weak financial health signals
Distress zone — elevated risk
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
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 1.23 suggests the stock is reasonably priced for its growth.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bear Case : PAYC
The primary concerns for PAYC are Price/Book, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.72 is elevated, increasing financial risk.
Bear Case : SONO
The primary concerns for SONO are P/E Ratio, Market Cap, Return on Equity. Thin 3.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
PAYC profiles as a mature stock while SONO is a value play — different risk/reward profiles.
SONO carries more volatility with a beta of 1.94 — expect wider price swings.
PAYC is growing revenue faster at 9.8% — sustainability is the question.
PAYC generates stronger free cash flow (373M), providing more financial flexibility.
Bottom Line
PAYC scores higher overall (72/100 vs 48/100), backed by strong 22.8% margins. 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.
Sonos Inc
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.
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