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. or Paylocity Holding Corporation 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. and Paylocity Holding Corporation compare based on key financial metrics to determine which better meets your investment needs.

About Paycom Software, Inc. and Paylocity Holding Corporation

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. The company’s HCM solution 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; talent acquisition, including applicant tracking, background checks, on-boarding, e-verify, and tax credit services; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, Paycom learning, certification management. The company also offers time and labor management, such as time and attendance, scheduling, time-off requests, and labor allocation solutions. 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; and MyCom is a communications tool that provides organizations with a central place to share information with employees. Paycom Software, Inc. was founded in 1998 and is based in Oklahoma City, Oklahoma.

Paylocity Holding Corporation provides cloud-based human capital management, payroll software, and spend management solutions for the workforce in the United States. The company offers payroll solutions comprising payroll and tax services, global payroll, on-demand payment, and garnishments; human resources (HR) solutions consisting of human resources, employee self-service, workflows and documents, HR compliance dashboard, and HR edge; time and attendance, scheduling, and time collection; time and labor solutions, including time and attendance, scheduling, and time collection; and talent solutions, such as recruiting, onboarding, market pay, learning, performance, and compensation. It also provides benefits solutions comprising benefit enrollment and updates, and third-party administrative solutions; employee experiences consisting of community, video, employee voice, recognition and rewards, modern workforce index, data insights, and reporting; and Paylocity for finance solutions, such as headcount planning, expense management, accounts payable automation, corporate cards, and guided procurement. In addition, the company offers implementation and training, client services, and tax and regulatory services. It serves for-profit and non-profit organizations across industries, including business services, financial services, healthcare, manufacturing, restaurants, retail, technology, and others. The company also sells its products through sales representatives. Paylocity Holding Corporation was founded in 1997 and is headquartered in Schaumburg, Illinois.

Latest Professional Services and Paycom Software, Inc., Paylocity Holding Corporation Stock News

As of July 24, 2026, Paycom Software, Inc. had a $6.8 billion market capitalization, compared to the Professional Services median of $1.1 million. Paycom Software, Inc.’s stock is down 8.8% in 2026, down 1.8% in the previous five trading days and down 38.53% in the past year.

Currently, Paycom Software, Inc.’s price-earnings ratio is 17.0. Paycom Software, Inc.’s trailing 12-month revenue is $2.1 billion with a 22.4% net profit margin. Year-over-year quarterly sales growth most recently was 7.8%. Analysts expect adjusted earnings to reach $10.915 per share for the current fiscal year. Paycom Software, Inc. currently has a 1.0% dividend yield.

As of July 24, 2026, Paylocity Holding Corporation had a $6.7 billion market cap, putting it in the 72nd percentile of all stocks. Paylocity Holding Corporation’s stock is down 17.9% in 2026, down 0.6% in the previous five trading days and down 32.84% in the past year.

Currently, Paylocity Holding Corporation’s price-earnings ratio is 26.8. Paylocity Holding Corporation’s trailing 12-month revenue is $1.7 billion with a 14.9% net profit margin. Year-over-year quarterly sales growth most recently was 10.5%. Analysts expect adjusted earnings to reach $8.087 per share for the current fiscal year. Paylocity Holding Corporation does not currently pay a dividend.

How We Compare Paycom Software, Inc. and Paylocity Holding Corporation 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. and Paylocity Holding Corporation’s stock grades to see how they measure up against one another.

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Paycom Software, Inc. and Paylocity Holding Corporation’s Quality Grades

Company	Ticker	Quality
Paycom Software, Inc.	PAYC	A
Paylocity Holding Corporation	PCTY	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 91, which is Very Strong. Paylocity Holding Corporation has a Quality Score of 88, which is Very Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both Paycom Software, Inc. and Paylocity Holding Corporation 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. and Paylocity Holding Corporation’s Momentum Grades

Company	Ticker	Momentum
Paycom Software, Inc.	PAYC	D
Paylocity Holding Corporation	PCTY	D

Momentum grades help to 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. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Paycom Software, Inc. has a Momentum Score of 30, which is Weak. Paylocity Holding Corporation has a Momentum Score of 38, which is Weak.

The Momentum Stock Winner: No Clear Winner

Neither Paycom Software, Inc. or Paylocity Holding Corporation has a strong enough Momentum Grade to 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. or Paylocity Holding Corporation is the better investment when it comes to momentum.

Paycom Software, Inc. and Paylocity Holding Corporation’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Paycom Software, Inc.	PAYC	C
Paylocity Holding Corporation	PCTY	C

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 43, which is Neutral. Paylocity Holding Corporation has a Earnings Estimate Score of 60, which is Neutral.

The Earnings Estimate Revisions Stock Winner: No Clear Winner

Neither Paycom Software, Inc. or Paylocity Holding Corporation 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. or Paylocity Holding Corporation is the better investment when it comes to estimate revisions.

Other Paycom Software, Inc. and Paylocity Holding Corporation Grades

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

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

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. and Paylocity Holding Corporation pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Paycom Software, Inc. or Paylocity Holding Corporation Stock?

Overall, Paycom Software, Inc. stock has a Momentum Score of 30, Estimate Revisions Score of 43 and Quality Score of 91.

Paylocity Holding Corporation stock has a Momentum Score of 38, Estimate Revisions Score of 60 and Quality Score of 88.

Comparing Paycom Software, Inc. and Paylocity Holding Corporation’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.

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.