WallStSmart

Paylocity Holdng (PCTY)vsSAP SE ADR (SAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SAP SE ADR generates 2091% more annual revenue ($36.80B vs $1.68B). SAP leads profitability with a 19.5% profit margin vs 14.2%. SAP appears more attractively valued with a PEG of 0.79. PCTY earns a higher WallStSmart Score of 66/100 (B-).

PCTY

Strong Buy

66

out of 100

Grade: B-

Growth: 9.3Profit: 6.5Value: 10.0Quality: 4.8
Piotroski: 6/9Altman Z: 1.22

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

PCTYUndervalued (+42.5%)

Margin of Safety

+42.5%

Fair Value

$187.20

Current Price

$109.60

$77.60 discount

UndervaluedFair: $187.20Overvalued
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

PCTY3 strengths · Avg: 9.0/10
EPS GrowthGrowth
133.3%10/10

Earnings expanding 133.3% YoY

Return on EquityProfitability
21.0%9/10

Every $100 of equity generates 21 in profit

Revenue GrowthGrowth
28.2%8/10

Revenue surging 28.2% year-over-year

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

PCTY2 concerns · Avg: 3.0/10
P/E RatioValuation
27.1x4/10

Moderate valuation

Altman Z-ScoreHealth
1.222/10

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 : PCTY

The strongest argument for PCTY centers on EPS Growth, Return on Equity, Revenue Growth. Revenue growth of 28.2% demonstrates continued momentum. PEG of 1.27 suggests the stock is reasonably priced for its growth.

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 : PCTY

The primary concerns for PCTY are P/E Ratio, Altman Z-Score.

Bear Case : SAP

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

Key Dynamics to Monitor

PCTY profiles as a growth stock while SAP is a value play — different risk/reward profiles.

SAP carries more volatility with a beta of 0.69 — expect wider price swings.

PCTY is growing revenue faster at 28.2% — sustainability is the question.

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

Bottom Line

PCTY scores higher overall (66/100 vs 58/100) and 28.2% 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.

Paylocity Holdng

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Paylocity Holding Corporation provides cloud-based payroll and human capital management software solutions for midsize organizations in the United States. The company is headquartered in Schaumburg, Illinois.

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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