PAYX vs. WCN, FIS, SQ, PLTR, NU, CPRT, IT, GPN, MRVL, and VRSK
Should you be buying Paychex stock or one of its competitors? The main competitors of Paychex include Waste Connections (WCN), Fidelity National Information Services (FIS), Block (SQ), Palantir Technologies (PLTR), NU (NU), Copart (CPRT), Gartner (IT), Global Payments (GPN), Marvell Technology (MRVL), and Verisk Analytics (VRSK). These companies are all part of the "business services" sector.
Waste Connections (NYSE:WCN) and Paychex (NASDAQ:PAYX) are both large-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, media sentiment, earnings, community ranking and dividends.
Waste Connections presently has a consensus price target of $179.33, suggesting a potential upside of 10.58%. Paychex has a consensus price target of $123.00, suggesting a potential upside of 3.53%. Given Paychex's stronger consensus rating and higher probable upside, research analysts clearly believe Waste Connections is more favorable than Paychex.
Waste Connections pays an annual dividend of $1.14 per share and has a dividend yield of 0.7%. Paychex pays an annual dividend of $3.56 per share and has a dividend yield of 3.0%. Waste Connections pays out 37.0% of its earnings in the form of a dividend. Paychex pays out 77.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Waste Connections has increased its dividend for 7 consecutive years and Paychex has increased its dividend for 13 consecutive years. Paychex is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
In the previous week, Waste Connections had 20 more articles in the media than Paychex. MarketBeat recorded 27 mentions for Waste Connections and 7 mentions for Paychex. Waste Connections' average media sentiment score of 1.69 beat Paychex's score of 0.07 indicating that Paychex is being referred to more favorably in the news media.
86.1% of Waste Connections shares are owned by institutional investors. Comparatively, 83.5% of Paychex shares are owned by institutional investors. 0.3% of Waste Connections shares are owned by company insiders. Comparatively, 11.5% of Paychex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Paychex has lower revenue, but higher earnings than Waste Connections. Paychex is trading at a lower price-to-earnings ratio than Waste Connections, indicating that it is currently the more affordable of the two stocks.
Paychex has a net margin of 31.86% compared to Paychex's net margin of 9.70%. Waste Connections' return on equity of 46.14% beat Paychex's return on equity.
Waste Connections has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Paychex has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.
Waste Connections received 502 more outperform votes than Paychex when rated by MarketBeat users. Likewise, 75.24% of users gave Waste Connections an outperform vote while only 42.61% of users gave Paychex an outperform vote.
Summary
Waste Connections and Paychex tied by winning 11 of the 22 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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