Tyler Technologies (NYSE:TYL – Get Free Report) and Paycom Software (NYSE:PAYC – Get Free Report) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Earnings & Valuation
This table compares Tyler Technologies and Paycom Software”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tyler Technologies | $2.43 billion | 5.77 | $315.60 million | $7.54 | 45.39 |
| Paycom Software | $2.05 billion | 4.72 | $453.40 million | $9.41 | 22.84 |
Volatility and Risk
Tyler Technologies has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Paycom Software has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.
Profitability
This table compares Tyler Technologies and Paycom Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tyler Technologies | 13.36% | 11.15% | 7.14% |
| Paycom Software | 22.78% | 37.06% | 8.17% |
Analyst Ratings
This is a summary of recent ratings and target prices for Tyler Technologies and Paycom Software, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tyler Technologies | 1 | 3 | 13 | 1 | 2.78 |
| Paycom Software | 0 | 9 | 5 | 1 | 2.47 |
Tyler Technologies currently has a consensus target price of $456.72, indicating a potential upside of 33.44%. Paycom Software has a consensus target price of $214.23, indicating a potential downside of 0.33%. Given Tyler Technologies’ stronger consensus rating and higher possible upside, research analysts clearly believe Tyler Technologies is more favorable than Paycom Software.
Institutional & Insider Ownership
93.3% of Tyler Technologies shares are held by institutional investors. Comparatively, 87.8% of Paycom Software shares are held by institutional investors. 1.1% of Tyler Technologies shares are held by insiders. Comparatively, 13.2% of Paycom Software shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Tyler Technologies beats Paycom Software on 8 of the 14 factors compared between the two stocks.
About Tyler Technologies
Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.
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.
Receive News & Ratings for Tyler Technologies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tyler Technologies and related companies with MarketBeat.com's FREE daily email newsletter.
