Which Is a Better Investment, Exponent, Inc. or Paycom Software, Inc. Stock?

By Jenna Brashear
December 06, 2025
Large versus logo comparing two stocks in the same industry
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Sifting through countless of stocks in the Professional Services industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Paycom Software, Inc., Exponent or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Paycom Software, Inc., Exponent and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Paycom Software, Inc., Exponent and Inc.

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. The company offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. Its HCM solution provides a suite of applications in the areas of talent acquisition, including applicant tracking, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling, time-off requests, and labor allocation solutions. The company’s HCM solution also offers payroll applications comprising better employee transaction interface, payroll and payroll tax management, payroll card, Everyday, Paycom pay, Client Action Center, expense management, garnishment administration, and GL concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, and Paycom learning. 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; COBRA administration; personnel action and performance discussion forms; Paycom surveys; retirement 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.

Exponent, Inc., together with its subsidiaries, operates as a science and engineering consulting company in the United States and internationally. The company operates in two segments, Engineering and Other Scientific, and Environmental and Health. The company provides services in the areas of biomechanics, biomedical engineering and sciences, civil and structural engineering, construction consulting, data sciences, electrical engineering and computer science, human factors, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, thermal sciences, and vehicle engineering. It also offers services in the areas of chemical regulation and food safety, ecological and biological sciences, environmental and earth sciences, and health sciences. In addition, the company provides proactive and reactive product safety, litigation support, and technical, regulatory services. It serves clients in chemical, construction, consumer products, energy, food, beverage and nutrition, government, life sciences, insurance, manufacturing, technology, industrial equipment, transportation, and other sectors. The company was formerly known as The Failure Group, Inc. and changed its name to Exponent, Inc. in 1998. The company was founded in 1967 and is headquartered in Menlo Park, California.

Latest Professional Services and Paycom Software, Inc., Exponent, Inc. Stock News

As of December 5, 2025, Paycom Software, Inc. had a $9.1 billion market capitalization, compared to the Professional Services median of $1.6 million. Paycom Software, Inc.’s stock is down 19.1% in 2025, up 2.8% in the previous five trading days and down 27.91% in the past year.

Currently, Paycom Software, Inc.’s price-earnings ratio is 20.6. Paycom Software, Inc.’s trailing 12-month revenue is $2.0 billion with a 22.6% net profit margin. Year-over-year quarterly sales growth most recently was 9.2%. Analysts expect adjusted earnings to reach $9.308 per share for the current fiscal year. Paycom Software, Inc. currently has a 0.9% dividend yield.

As of December 5, 2025, Exponent, Inc. had a $3.7 billion market cap, putting it in the 65th percentile of all stocks. Exponent, Inc.’s stock is down 17.8% in 2025, up 1.3% in the previous five trading days and down 25.34% in the past year.

Currently, Exponent, Inc.’s price-earnings ratio is 36.1. Exponent, Inc.’s trailing 12-month revenue is $531.1 million with a 19.7% net profit margin. Year-over-year quarterly sales growth most recently was 9.6%. Analysts expect adjusted earnings to reach $2.057 per share for the current fiscal year. Exponent, Inc. currently has a 1.6% dividend yield.

How We Compare Paycom Software, Inc., Exponent and Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Paycom Software, Inc., Exponent and Inc.’s stock grades to see how they measure up against one another.

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Paycom Software, Inc., Exponent and Inc. Growth Grades

Company Ticker Growth
Paycom Software, Inc. PAYC B
Exponent, Inc. EXPO A

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Paycom Software, Inc. has a Growth Score of 70, which is Strong. Exponent, Inc. has a Growth Score of 97, which is Very Strong.

The Growth Grade Winner: Exponent, Inc.

As you can clearly see from the Growth Grade breakdown above, Exponent, Inc. has a more attractive growth grade than Paycom Software, Inc.. For investors who focus solely on how a company is growing relative to other companies in the same industry, Exponent, Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Paycom Software, Inc., Exponent and Inc.’s Quality Grades

Company Ticker Quality
Paycom Software, Inc. PAYC A
Exponent, Inc. EXPO A

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Paycom Software, Inc. has a Quality Score of 81, which is Very Strong. Exponent, Inc. has a Quality Score of 89, which is Very Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both Paycom Software, Inc., Exponent and Inc. have a grade of A. For investors who focus solely on a company’s overall quality, you will need to conduct further research into both companies to see if they are a good fit for your portfolio. As a good rule of thumb, you should always analyze multiple factors based on a wide range of metrics before choosing a company to invest in.

Paycom Software, Inc., Exponent and Inc.’s Estimate Revisions Grades

Company Ticker Earnings Estimate
Paycom Software, Inc. PAYC C
Exponent, Inc. EXPO D

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Paycom Software, Inc. has a Earnings Estimate Score of 53, which is Neutral. Exponent, Inc. has a Earnings Estimate Score of 30, which is Negative.

The Earnings Estimate Revisions Stock Winner: No Clear Winner

Neither Paycom Software, Inc., Exponent or Inc. has an Earnings Estimate Revisions Grade that could be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Paycom Software, Inc., Exponent or Inc. is the better investment when it comes to estimate revisions.

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Other Paycom Software, Inc., Exponent and Inc. Grades

In addition to Growth, Quality and Estimate Revisions, A+ Investor also provides grades for Value and Momentum.

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AAII’s expansive and robust screening tools like A+ Investor help investors make confident decisions.

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Paycom Software, Inc., Exponent and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Paycom Software, Inc., Exponent or Inc. Stock?

Overall, Paycom Software, Inc. stock has a Growth Score of 70, Estimate Revisions Score of 53 and Quality Score of 81.

Exponent, Inc. stock has a Growth Score of 97, Estimate Revisions Score of 30 and Quality Score of 89.

Comparing Paycom Software, Inc., Exponent and Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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