Nice Systems (NASDAQ:NICE) versus Paylocity Holding Corporation (PCTY) Critical Survey

Nice Systems (NASDAQ: NICE) and Paylocity Holding Corporation (NASDAQ:PCTY) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Profitability

This table compares Nice Systems and Paylocity Holding Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nice Systems 7.99% 11.14% 6.91%
Paylocity Holding Corporation 1.81% 5.24% 0.54%

Volatility and Risk

Nice Systems has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Paylocity Holding Corporation has a beta of 2.26, suggesting that its share price is 126% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Nice Systems and Paylocity Holding Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nice Systems 0 4 3 0 2.43
Paylocity Holding Corporation 0 6 7 0 2.54

Nice Systems presently has a consensus target price of $80.50, suggesting a potential upside of 8.27%. Paylocity Holding Corporation has a consensus target price of $50.60, suggesting a potential upside of 12.44%. Given Paylocity Holding Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Paylocity Holding Corporation is more favorable than Nice Systems.

Dividends

Nice Systems pays an annual dividend of $0.39 per share and has a dividend yield of 0.5%. Paylocity Holding Corporation does not pay a dividend. Nice Systems pays out 25.3% of its earnings in the form of a dividend.

Insider & Institutional Ownership

43.7% of Nice Systems shares are held by institutional investors. Comparatively, 63.5% of Paylocity Holding Corporation shares are held by institutional investors. 0.0% of Nice Systems shares are held by insiders. Comparatively, 53.1% of Paylocity Holding Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Nice Systems and Paylocity Holding Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nice Systems $1.18 billion 3.79 $250.82 million $1.54 48.28
Paylocity Holding Corporation $283.79 million 8.17 $16.59 million $0.08 562.50

Nice Systems has higher revenue and earnings than Paylocity Holding Corporation. Nice Systems is trading at a lower price-to-earnings ratio than Paylocity Holding Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Paylocity Holding Corporation beats Nice Systems on 9 of the 16 factors compared between the two stocks.

About Nice Systems

NICE Ltd., formerly NICE-Systems Ltd., is a global enterprise software provider. The Company’s segments include Customer Interactions Solutions, and Financial Crime and Compliance Solutions. The Customer Interactions Solutions segment provides data driven insights that enable businesses to deliver personalized experience to customers. The Financial Crime and Compliance Solutions segment provides real time and cross-channel fraud prevention, anti-money laundering, brokerage compliance and enterprise-wide case management. The Company serves contact centers, back office operations and retail branches, covering various industries, including communications, banking, insurance, healthcare, business processes outsourcing (BPO), government, utilities, travel and entertainment. Its Multi-Channel Recording and Interaction Management enables organizations to capture structured and unstructured customer interaction and transaction data from multiple channels.

About Paylocity Holding Corporation

Paylocity Holding Corporation is a cloud-based provider of payroll and human capital management (HCM), software solutions for medium-sized organizations. The Company’s services are provided in a software-as-a-service delivery model utilizing its cloud-based platform. The cloud-based platform provides a suite of applications using a multi-tenant architecture. The cloud-based platform features a suite of unified payroll and HCM applications. The Company, through cloud-based platform, offers various products, which include Paylocity Web Pay, Paylocity HR, Paylocity Affordable Care Act Enhanced, Paylocity Impressions, Performance Management, Self-Service HR Portals, Paylocity Recruiting, Paylocity Web Time, Paylocity Web Onboarding, and Paylocity Web Benefits and Paylocity Enterprise Benefits, Powered by bswift. The multi-tenant software platform is configurable and includes a unified suite of payroll and HCM applications, such as time and labor tracking, benefits and talent management.

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