Comparing TaskUs (NASDAQ:TASK) & Paylocity (NASDAQ:PCTY)

Paylocity (NASDAQ:PCTY) and TaskUs (NASDAQ:TASK) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Analyst Ratings

This is a breakdown of current ratings for Paylocity and TaskUs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paylocity	0	5	12	0	2.71
TaskUs	1	4	1	0	2.00

Paylocity presently has a consensus price target of $177.82, suggesting a potential downside of 1.23%. TaskUs has a consensus price target of $9.80, suggesting a potential upside of 6.87%. Given TaskUs’ higher possible upside, analysts plainly believe TaskUs is more favorable than Paylocity.

Risk & Volatility

Paylocity has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, TaskUs has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500.

Profitability

This table compares Paylocity and TaskUs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paylocity	15.40%	27.59%	5.87%
TaskUs	8.22%	30.17%	11.13%

Institutional & Insider Ownership

94.8% of Paylocity shares are held by institutional investors. Comparatively, 44.6% of TaskUs shares are held by institutional investors. 20.1% of Paylocity shares are held by insiders. Comparatively, 31.9% of TaskUs shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Paylocity and TaskUs”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paylocity	$1.77 billion	5.28	$269.74 million	$5.16	34.89
TaskUs	$1.18 billion	0.71	$102.28 million	$1.10	8.34

Paylocity has higher revenue and earnings than TaskUs. TaskUs is trading at a lower price-to-earnings ratio than Paylocity, indicating that it is currently the more affordable of the two stocks.

Summary

Paylocity beats TaskUs on 9 of the 14 factors compared between the two stocks.

About Paylocity

Paylocity Holding Corporation provides cloud-based human capital management and payroll software to businesses in the United States. Its platform brings together tools that help employers manage payroll, human resources, benefits, and workforce operations. Products and services include payroll processing, benefits administration, time and labor management, talent acquisition and development, employee communications, and expense management. The platform is designed to help organizations streamline administrative work and support employees and managers through a unified system.

About TaskUs

TaskUs, Inc. provides outsourced digital services to technology companies and other businesses. Its services include customer experience support across digital channels, content moderation and trust and safety operations, and back-office support. The company also supports artificial intelligence and machine-learning initiatives through services such as data annotation and preparation. Its work helps clients manage customer interactions, review online content, and handle operational processes. Founded in 2008 by Bryce Maddock and Jaspar Weir, TaskUs serves clients through a global network of operations, including in the United States, India, and the Philippines.