Paylocity (NASDAQ:PCTY) versus DHI Group (NYSE:DHX) Financial Comparison

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

Profitability

This table compares Paylocity and DHI Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paylocity	15.23%	27.02%	5.78%
DHI Group	0.97%	13.01%	6.46%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Paylocity and DHI Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paylocity	0	5	12	0	2.71
DHI Group	0	2	3	0	2.60

Paylocity currently has a consensus price target of $166.71, suggesting a potential downside of 5.92%. DHI Group has a consensus price target of $6.75, suggesting a potential upside of 46.20%. Given DHI Group’s higher possible upside, analysts plainly believe DHI Group is more favorable than Paylocity.

Earnings & Valuation

This table compares Paylocity and DHI Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paylocity	$1.77 billion	5.31	$269.74 million	$4.95	35.80
DHI Group	$124.53 million	1.61	-$13.51 million	$0.03	153.90

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

Insider and Institutional Ownership

94.8% of Paylocity shares are owned by institutional investors. Comparatively, 69.3% of DHI Group shares are owned by institutional investors. 19.4% of Paylocity shares are owned by company insiders. Comparatively, 16.2% of DHI Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Paylocity has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, DHI Group has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Summary

Paylocity beats DHI Group on 10 of the 14 factors compared between the two stocks.

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.

About DHI Group

DHI Group, Inc. provides data, insights, and employment connections through specialized services for technology professionals and other select online communities in the United States. Its solutions include talent profiles; job postings; employer branding; and other services comprising virtual and live career events, sourcing services, and content and data services that provides tailored content to help professionals manage their careers and provide employers insight into recruiting strategies and trends. The company operates Dice that offers job postings of technology and non-technology companies for industries, such as positions for software engineers, big data professionals, systems administrators, database specialists, project managers, and various other technology and engineering professionals; and ClearanceJobs, an online career community, which matches security-cleared professionals with employers in a secure and private environment to fill the jobs that safeguard its nation. It serves small, mid-sized, and large direct employers; staffing companies; recruiting agencies; staffing and consulting firms; and marketing departments of companies, as well as direct hiring companies. The company offers its products and services primarily through its direct sales force and agency partner channel. The company was formerly known as Dice Holdings, Inc. and changed its name to DHI Group, Inc. in April 2015. DHI Group, Inc. was founded in 1990 and is headquartered in Centennial, Colorado.