Paylocity Holdng (PCTY)vsSonos Inc (SONO)
PCTY
Paylocity Holdng
$107.94
+5.54%
TECHNOLOGY · Cap: $5.87B
SONO
Sonos Inc
$14.67
+1.31%
TECHNOLOGY · Cap: $1.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Paylocity Holdng generates 17% more annual revenue ($1.68B vs $1.44B). PCTY leads profitability with a 14.2% profit margin vs -1.2%. PCTY earns a higher WallStSmart Score of 68/100 (B-).
PCTY
Strong Buy68
out of 100
Grade: B-
SONO
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.6%
Fair Value
$280.52
Current Price
$107.94
$172.58 discount
Margin of Safety
+42.1%
Fair Value
$28.49
Current Price
$14.67
$13.82 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 21 in profit
Earnings expanding 39.4% YoY
Earnings expanding 87.5% YoY
Areas to Watch
Moderate valuation
Distress zone — elevated risk
Smaller company, higher risk/reward
ROE of -3.9% — below average capital efficiency
Revenue declined 0.9%
Currently unprofitable
Comparative Analysis Report
WallStSmart ResearchBull Case : PCTY
The strongest argument for PCTY centers on Return on Equity, EPS Growth. Revenue growth of 10.4% demonstrates continued momentum. PEG of 1.13 suggests the stock is reasonably priced for its growth.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth.
Bear Case : PCTY
The primary concerns for PCTY are P/E Ratio, Altman Z-Score.
Bear Case : SONO
The primary concerns for SONO are Market Cap, Return on Equity, Revenue Growth.
Key Dynamics to Monitor
PCTY profiles as a value stock while SONO is a turnaround play — different risk/reward profiles.
SONO carries more volatility with a beta of 2.00 — expect wider price swings.
PCTY is growing revenue faster at 10.4% — sustainability is the question.
SONO generates stronger free cash flow (157M), providing more financial flexibility.
Bottom Line
PCTY scores higher overall (68/100 vs 42/100) and 10.4% revenue growth. SONO offers better value entry with a 42.1% margin of safety. 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.
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.
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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