analyticsHR Tech
Data as of Q4 2025
Summary Verdict
PAYC: 2—PAYX: 3wins
Rule of 40
28.8PAYC
37.0PAYX
check_circlePAYX leads
Revenue Growth
8.9%PAYC
5.4%PAYX
check_circlePAYC leads
Gross Margin
83%PAYC
72%PAYX
check_circlePAYC leads
FCF Margin
19.9%PAYC
31.6%PAYX
check_circlePAYX leads
Operating Margin
27.6%PAYC
40.8%PAYX
check_circlePAYX leads
NRR
—PAYC
—PAYX
Metric
Rule of 40Efficiency score
PAYC
28.8
PAYX
37.0check_circle
Revenue GrowthYoY
PAYC
8.9%check_circle
PAYX
5.4%
Gross Margin% of revenue
PAYC
83%check_circle
PAYX
72%
FCF MarginFree cash flow
PAYC
19.9%
PAYX
31.6%check_circle
Operating MarginGAAP
PAYC
27.6%
PAYX
40.8%check_circle
NRRNet retention
PAYC
N/A
PAYX
N/A
EV / RevenueValuation multiple
PAYC
3.4xcheck_circle
PAYX
6.0x
Market CapUSD
PAYC
$7.2B
PAYX
$33.4Bcheck_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 Q4 2025, Paycom Software, Inc. trades at 3.4x EV/Revenue versus Paychex, Inc. at 6.0x. On the Rule of 40, Paycom Software, Inc. scores 28.8 compared to Paychex, Inc.'s 37.0, placing Paychex, Inc. ahead in operating efficiency. Gross margins stand at Paycom Software, Inc. 83% vs Paychex, Inc. 72%.
Sector Context
Both companies operate in the HR Tech sector. The median columns above show where each company stands relative to their peers.