Asure Software (NASDAQ: ASUR) and Paylocity (NASDAQ:PCTY) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Risk and Volatility

Asure Software has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Paylocity has a beta of 2.11, suggesting that its share price is 111% more volatile than the S&P 500.

Institutional and Insider Ownership

46.6% of Asure Software shares are held by institutional investors. Comparatively, 59.8% of Paylocity shares are held by institutional investors. 22.7% of Asure Software shares are held by company insiders. Comparatively, 48.8% of Paylocity shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Asure Software and Paylocity, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Asure Software 0 1 8 0 2.89
Paylocity 0 4 9 0 2.69

Asure Software currently has a consensus price target of $16.57, indicating a potential upside of 19.39%. Paylocity has a consensus price target of $52.92, indicating a potential upside of 18.22%. Given Asure Software’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Asure Software is more favorable than Paylocity.

Valuation & Earnings

This table compares Asure Software and Paylocity’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Asure Software $35.54 million 4.87 -$970,000.00 ($0.38) -36.53
Paylocity $300.01 million 7.84 $6.71 million $0.18 248.67

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

Profitability

This table compares Asure Software and Paylocity’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Asure Software -8.28% 6.96% 2.09%
Paylocity 3.11% 7.98% 0.93%

Summary

Paylocity beats Asure Software on 11 of the 14 factors compared between the two stocks.

Asure Software Company Profile

Asure Software, Inc. is a global provider of cloud-based software-as-a-service (SaaS) solutions that help companies to bring people, time, space and assets together. The Company serves approximately 6,000 clients in over 80 countries. The Company offers a range of solutions to help its clients optimize and manage mobile workforces and global workspaces. Its SaaS-based offerings include asset management, mobile room scheduling, mobile time tracking, scheduling software, space utilization solutions, tablet-based time clocks, time clocks, touch panels for room scheduling and workplace business intelligence (BI) analytics. It offers approximately two product lines, including AsureSpace and AsureForce. Its AsureSpace provides workplace management solutions that enable organizations to manage their office environments and manage real estate utilization. Its AsureForce time and labor management solutions help organizations to manage labor and labor administration costs and activities.

Paylocity Company Profile

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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