Analyzing Paylocity (PCTY) & Solera (SLH)
Paylocity (NASDAQ: PCTY) and Solera (NYSE:SLH) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.
Institutional and Insider Ownership
59.8% of Paylocity shares are owned by institutional investors. 48.8% of Paylocity shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Paylocity and Solera’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Paylocity has a beta of 2.13, meaning that its stock price is 113% more volatile than the S&P 500. Comparatively, Solera has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500.
Earnings & Valuation
This table compares Paylocity and Solera’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Paylocity||$300.01 million||7.98||$6.71 million||$0.18||253.33|
Paylocity has higher revenue and earnings than Solera. Solera is trading at a lower price-to-earnings ratio than Paylocity, indicating that it is currently the more affordable of the two stocks.
Solera pays an annual dividend of $0.90 per share and has a dividend yield of 1.6%. Paylocity does not pay a dividend. Solera pays out -45.5% of its earnings in the form of a dividend. Solera has raised its dividend for 7 consecutive years.
This is a summary of current recommendations for Paylocity and Solera, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Paylocity presently has a consensus price target of $52.92, suggesting a potential upside of 16.05%. Given Paylocity’s higher possible upside, analysts clearly believe Paylocity is more favorable than Solera.
Paylocity beats Solera on 8 of the 13 factors compared between the two stocks.
Paylocity Holding Corporation is a cloud-based provider of payroll and human capital management (HCM), software solutions for medium-sized organizations. The Company’s services are provided in a software-as-a-service delivery model utilizing its cloud-based platform. The cloud-based platform provides a suite of applications using a multi-tenant architecture. The cloud-based platform features a suite of unified payroll and HCM applications. The Company, through cloud-based platform, offers various products, which include Paylocity Web Pay, Paylocity HR, Paylocity Affordable Care Act Enhanced, Paylocity Impressions, Performance Management, Self-Service HR Portals, Paylocity Recruiting, Paylocity Web Time, Paylocity Web Onboarding, and Paylocity Web Benefits and Paylocity Enterprise Benefits, Powered by bswift. The multi-tenant software platform is configurable and includes a unified suite of payroll and HCM applications, such as time and labor tracking, benefits and talent management.
Solera Holdings, Inc. is a United States-based company, which is a provider of risk and asset management software and services to the automotive and property marketplace, including the global property and casualty (P&C) insurance industry. The Company is engaged in cognitive technologies for the automotive and home ownership ecosystems. The Company’s solutions and services bring together consumers, insurers, banks, governments, manufacturers, owners, wholesalers, retailers, and service and repair industries, into digitally unified ecosystems that enable the management, protection and security of assets throughout their lifecycles. The Company’s product platforms include Audatex, AutoPoint, CAP/HPI, Digidentity, Explore Data, Hollander, Identifix, Inpart and TitleTec, as well as the company’s application, Digital Garage. The Company processes over 240 million transactions annually for approximately 200,000 partners in approximately 80 countries.
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