Paylocity vs Workday

Paylocity and Workday are two leading providers of cloud-based software solutions for human capital management. Paylocity specializes in payroll processing, time and attendance tracking, and HR management, while Workday offers a comprehensive suite of HR, finance, and planning tools. Both companies have experienced strong growth in recent years, but there are key differences in their business models and target markets. Investors looking to capitalize on the growing demand for HR technology may consider comparing Paylocity and Workday stocks to make informed investment decisions.

Paylocity or Workday?

When comparing Paylocity and Workday, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Paylocity and Workday.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Paylocity has a dividend yield of -%, while Workday has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Paylocity reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Workday reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Paylocity P/E ratio at 45.95 and Workday's P/E ratio at 42.15. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Paylocity P/B ratio is 9.20 while Workday's P/B ratio is 7.78.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Paylocity has seen a 5-year revenue growth of 1.93%, while Workday's is 1.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Paylocity's ROE at 20.62% and Workday's ROE at 19.75%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $168.18 for Paylocity and $242.06 for Workday. Over the past year, Paylocity's prices ranged from $129.94 to $205.48, with a yearly change of 58.13%. Workday's prices fluctuated between $199.81 and $311.28, with a yearly change of 55.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.