PAYX vs. SQ, FIS, PLTR, CPRT, VRSK, IT, NU, SPOT, RSG, and EFX
Should you be buying Paychex stock or one of its competitors? The main competitors of Paychex include Block (SQ), Fidelity National Information Services (FIS), Palantir Technologies (PLTR), Copart (CPRT), Verisk Analytics (VRSK), Gartner (IT), NU (NU), Spotify Technology (SPOT), Republic Services (RSG), and Equifax (EFX). These companies are all part of the "business services" sector.
Paychex (NASDAQ:PAYX) and Block (NYSE:SQ) are both large-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their media sentiment, risk, valuation, profitability, community ranking, analyst recommendations, dividends, earnings and institutional ownership.
Paychex currently has a consensus target price of $123.00, indicating a potential upside of 1.52%. Block has a consensus target price of $87.59, indicating a potential upside of 33.79%. Given Block's stronger consensus rating and higher possible upside, analysts clearly believe Block is more favorable than Paychex.
83.5% of Paychex shares are owned by institutional investors. Comparatively, 70.4% of Block shares are owned by institutional investors. 11.5% of Paychex shares are owned by insiders. Comparatively, 10.5% of Block shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Paychex has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Block has a beta of 2.57, suggesting that its stock price is 157% more volatile than the S&P 500.
Block received 1076 more outperform votes than Paychex when rated by MarketBeat users. Likewise, 69.52% of users gave Block an outperform vote while only 42.56% of users gave Paychex an outperform vote.
Paychex has a net margin of 31.86% compared to Block's net margin of 2.18%. Paychex's return on equity of 46.14% beat Block's return on equity.
In the previous week, Block had 10 more articles in the media than Paychex. MarketBeat recorded 20 mentions for Block and 10 mentions for Paychex. Paychex's average media sentiment score of 1.03 beat Block's score of 0.19 indicating that Paychex is being referred to more favorably in the media.
Paychex has higher earnings, but lower revenue than Block. Paychex is trading at a lower price-to-earnings ratio than Block, indicating that it is currently the more affordable of the two stocks.
Summary
Paychex and Block tied by winning 9 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding PAYX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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