Head-To-Head Review: XBP Global (NASDAQ:XBP) versus Paylocity (NASDAQ:PCTY)

XBP Global (NASDAQ:XBP) and Paylocity (NASDAQ:PCTY) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Earnings and Valuation

This table compares XBP Global and Paylocity”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XBP Global	$791.04 million	0.05	$1.10 billion	($3.70)	-0.91
Paylocity	$1.77 billion	4.29	$269.74 million	$4.95	28.95

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

Volatility & Risk

XBP Global has a beta of -0.45, indicating that its share price is 145% less volatile than the S&P 500. Comparatively, Paylocity has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.

Profitability

This table compares XBP Global and Paylocity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XBP Global	134.88%	1,328.38%	122.34%
Paylocity	15.23%	27.02%	5.78%

Institutional and Insider Ownership

15.7% of XBP Global shares are held by institutional investors. Comparatively, 94.8% of Paylocity shares are held by institutional investors. 31.4% of XBP Global shares are held by company insiders. Comparatively, 19.4% of Paylocity shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for XBP Global and Paylocity, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XBP Global	1	0	1	0	2.00
Paylocity	0	5	12	0	2.71

XBP Global currently has a consensus price target of $5.00, indicating a potential upside of 49.08%. Paylocity has a consensus price target of $160.53, indicating a potential upside of 12.03%. Given XBP Global’s higher probable upside, research analysts clearly believe XBP Global is more favorable than Paylocity.

Summary

Paylocity beats XBP Global on 8 of the 14 factors compared between the two stocks.

About XBP Global

XBP Europe Holdings, Inc. provides bills, payments, and related solutions and services in France, Germany, the United Kingdom, Sweden, and internationally. The company operates through two segments, Bills & Payments and Technology. The Bills & Payments segment focuses on optimizing how bills and payments are processed by businesses of all sizes and industries. This segment also offers automation of accounts payable and accounts receivables processes and seeks to integrate buyers and suppliers, as well as engages in digital transformation business. The Technology segment engages in the sale of recurring software licenses and related maintenance, and hardware solutions, as well as provision of related maintenance and professional services. In addition, the company offers XBP platform that provides a secured network allowing billers, consumers, and businesses to communicate and transact; XBP Omnidirect, a cloud-based platform that provides enterprise level client communication management; and Reaktr.ai for cybersecurity, data modernization and cloud management, and generative AI. Further, it provides request to pay solutions; enterprise information management solutions; robotic process automation solutions; digital mailroom and records digitization solutions; business process management and intelligent workflow automation solutions; integrated communications solution; banking and financial industry solutions and services; cross-border payments; digitization of checks; confirmation of payee; and mortgage and loan management solutions. The company is based in Egham, the United Kingdom. XBP Europe Holdings, Inc. operates as a subsidiary of Exela Technologies, Inc.

About Paylocity

Paylocity Holding Corporation engages in the provision of cloud-based human capital management and payroll software solutions for workforce in the United States. The company offers payroll software solution for global payroll, expense management, tax services, on demand payment, and garnishment managed services; and time and labor management software for time and attendance, scheduling, and time collection. It also provides human resources (HR) software solutions for employee self-service, compliance, HR edge, data analytics, and workflows and documents, as well as human resource management system; talent management system for recruiting, onboarding, performance, compensation, and learning; and benefits administration software. In addition, the company offers employee experience platform for community, employee voice, recognition and rewards, video, and modern workforce index; HR reporting software; and mobile HR solutions. Further, it provides implementation and training, client, and tax and regulatory services. The company serves for-profit and non-profit organizations across industries, including business services, financial services, healthcare, manufacturing, restaurants, retail, technology, and others. It sells its products through sales representatives. The company was founded in 1997 and is headquartered in Schaumburg, Illinois.