Analyzing Adyen (OTCMKTS:ADYEY) and Paycom Software (NYSE:PAYC)

Paycom Software (NYSE:PAYC) and Adyen (OTCMKTS:ADYEY) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Earnings & Valuation

This table compares Paycom Software and Adyen”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paycom Software	$1.88 billion	4.99	$502.00 million	$7.39	21.98
Adyen	$2.41 billion	20.38	$1.00 billion	N/A	N/A

Adyen has higher revenue and earnings than Paycom Software.

Analyst Ratings

This is a summary of recent ratings and price targets for Paycom Software and Adyen, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paycom Software	1	11	4	0	2.19
Adyen	0	1	5	2	3.13

Paycom Software currently has a consensus target price of $225.77, suggesting a potential upside of 38.99%. Given Paycom Software’s higher possible upside, equities analysts clearly believe Paycom Software is more favorable than Adyen.

Institutional & Insider Ownership

87.8% of Paycom Software shares are owned by institutional investors. Comparatively, 0.1% of Adyen shares are owned by institutional investors. 10.9% of Paycom Software shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Paycom Software and Adyen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paycom Software	22.65%	24.79%	9.02%
Adyen	N/A	N/A	N/A

Volatility & Risk

Paycom Software has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Adyen has a beta of 2.41, meaning that its share price is 141% more volatile than the S&P 500.

Summary

Adyen beats Paycom Software on 7 of the 13 factors compared between the two stocks.

About Paycom Software

Paycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution provides a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling, time-off requests, labor allocation, labor management reports/push reporting, geofencing/geotracking, and Microfence, a proprietary Bluetooth. Its HCM solution also offers payroll applications comprising better employee transaction interface, payroll and tax management, payroll card, Everyday, Paycom pay, Client Action Center, expense management, mileage tracker/fixed and variable rates, garnishment administration, and GL concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, and Paycom learning, as well as my analytics. In addition, its HCM solution provides manager on-the-go that gives supervisors and managers the ability to perform a variety of tasks, such as approving time-off requests and expense reimbursements; direct data exchange; ask here, a tool for direct line of communication to ask work-related questions; document and checklist; government and compliance; benefits administration/benefits to carrier; benefit enrollment service; COBRA administration; personnel action and performance discussion forms; surveys; 401(k) reporting; report center; and affordable care act applications, as well as Clue, which securely collects, tracks, and manages the vaccination and testing data of the workforce. Paycom Software, Inc. was founded in 1998 and is based in Oklahoma City, Oklahoma.

About Adyen

Adyen N.V. operates a payments platform in Europe, the Middle East, Africa, North America, the Asia Pacific, Latin America. The company's platform integrates payments stack that include gateway, risk management, processing, issuing, acquiring, and settlement services. It offers a back-end infrastructure for authorizing. It serves digital, mobility, platforms and marketplace, retail, food and beverages, subscription, and hospital businesses. Adyen N.V. was incorporated in 2006 and is headquartered in Amsterdam, the Netherlands.