analyticsHR Tech
Data as of Q1 2026
Summary Verdict
PAYC: 1—PAYX: 4wins
Rule of 40
36.1PAYC
55.9PAYX
check_circlePAYX leads
Revenue Growth
10.4%PAYC
21.1%PAYX
check_circlePAYX leads
Gross Margin
83%PAYC
74%PAYX
check_circlePAYC leads
FCF Margin
25.7%PAYC
34.8%PAYX
check_circlePAYX leads
Operating Margin
29.8%PAYC
41.8%PAYX
check_circlePAYX leads
NRR
—PAYC
—PAYX
Metric
Rule of 40Efficiency score
PAYC
36.1
PAYX
55.9check_circle
Revenue GrowthYoY
PAYC
10.4%
PAYX
21.1%check_circle
Gross Margin% of revenue
PAYC
83%check_circle
PAYX
74%
FCF MarginFree cash flow
PAYC
25.7%
PAYX
34.8%check_circle
Operating MarginGAAP
PAYC
29.8%
PAYX
41.8%check_circle
NRRNet retention
PAYC
N/A
PAYX
N/A
EV / RevenueValuation multiple
PAYC
3.4xcheck_circle
PAYX
5.7x
Market CapUSD
PAYC
$7.5B
PAYX
$36.0Bcheck_circle
ARR GrowthYoY
PAYC
N/A
PAYX
N/A
CAC PaybackMonths to recover
PAYC
N/A
PAYX
N/A
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insights
Analysis
As of Q1 2026, Paycom Software, Inc. trades at 3.4x EV/Revenue versus Paychex, Inc. at 5.7x. On the Rule of 40, Paycom Software, Inc. scores 36.1 compared to Paychex, Inc.'s 55.9, placing Paychex, Inc. ahead in operating efficiency. Gross margins stand at Paycom Software, Inc. 83% vs Paychex, Inc. 74%.
Sector Context
Both companies operate in the HR Tech sector. The median columns above show where each company stands relative to their peers.