analyticsHR Tech
Data as of Q1 2026
Summary Verdict
PAYC: 3—PCTY: 2wins
Rule of 40
36.1PAYC
44.0PCTY
check_circlePCTY leads
Revenue Growth
10.4%PAYC
29.3%PCTY
check_circlePCTY leads
Gross Margin
83%PAYC
75%PCTY
check_circlePAYC leads
FCF Margin
25.7%PAYC
14.7%PCTY
check_circlePAYC leads
Operating Margin
29.8%PAYC
25.9%PCTY
check_circlePAYC leads
NRR
—PAYC
—PCTY
Metric
Rule of 40Efficiency score
PAYC
36.1
PCTY
44.0check_circle
Revenue GrowthYoY
PAYC
10.4%
PCTY
29.3%check_circle
Gross Margin% of revenue
PAYC
83%check_circle
PCTY
75%
FCF MarginFree cash flow
PAYC
25.7%check_circle
PCTY
14.7%
Operating MarginGAAP
PAYC
29.8%check_circle
PCTY
25.9%
NRRNet retention
PAYC
N/A
PCTY
N/A
EV / RevenueValuation multiple
PAYC
3.4x
PCTY
3.4xcheck_circle
Market CapUSD
PAYC
$7.5Bcheck_circle
PCTY
$6.1B
ARR GrowthYoY
PAYC
N/A
PCTY
N/A
CAC PaybackMonths to recover
PAYC
N/A
PCTY
N/A
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insights
Analysis
As of Q1 2026, Paycom Software, Inc. trades at 3.4x EV/Revenue versus Paylocity Holding Corporation at 3.4x. On the Rule of 40, Paycom Software, Inc. scores 36.1 compared to Paylocity Holding Corporation's 44.0, placing Paylocity Holding Corporation ahead in operating efficiency. Gross margins stand at Paycom Software, Inc. 83% vs Paylocity Holding Corporation 75%.
Sector Context
Both companies operate in the HR Tech sector. The median columns above show where each company stands relative to their peers.