analyticsHR Tech
Data as of Q1 2026
Summary Verdict
PCTY: 2—PAYX: 3wins
Rule of 40
44.0PCTY
55.9PAYX
check_circlePAYX leads
Revenue Growth
29.3%PCTY
21.1%PAYX
check_circlePCTY leads
Gross Margin
75%PCTY
74%PAYX
check_circlePCTY leads
FCF Margin
14.7%PCTY
34.8%PAYX
check_circlePAYX leads
Operating Margin
25.9%PCTY
41.8%PAYX
check_circlePAYX leads
NRR
—PCTY
—PAYX
Metric
Rule of 40Efficiency score
PCTY
44.0
PAYX
55.9check_circle
Revenue GrowthYoY
PCTY
29.3%check_circle
PAYX
21.1%
Gross Margin% of revenue
PCTY
75%check_circle
PAYX
74%
FCF MarginFree cash flow
PCTY
14.7%
PAYX
34.8%check_circle
Operating MarginGAAP
PCTY
25.9%
PAYX
41.8%check_circle
NRRNet retention
PCTY
N/A
PAYX
N/A
EV / RevenueValuation multiple
PCTY
3.5xcheck_circle
PAYX
5.5x
Market CapUSD
PCTY
$6.2B
PAYX
$34.7Bcheck_circle
ARR GrowthYoY
PCTY
N/A
PAYX
N/A
CAC PaybackMonths to recover
PCTY
N/A
PAYX
N/A
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insights
Analysis
As of Q1 2026, Paylocity Holding Corporation trades at 3.5x EV/Revenue versus Paychex, Inc. at 5.5x. On the Rule of 40, Paylocity Holding Corporation scores 44.0 compared to Paychex, Inc.'s 55.9, placing Paychex, Inc. ahead in operating efficiency. Gross margins stand at Paylocity Holding Corporation 75% 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.