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Paychex (PAYX) Competitors

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$139.34 -4.99 (-3.46%)
Closing price 08/1/2025 04:00 PM Eastern
Extended Trading
$139.68 +0.34 (+0.24%)
As of 08/1/2025 06:52 PM Eastern
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PAYX vs. ADP, CCRN, BAH, BR, IPG, MMC, FI, FIS, GPN, and JKHY

Should you be buying Paychex stock or one of its competitors? The main competitors of Paychex include Automatic Data Processing (ADP), Cross Country Healthcare (CCRN), Booz Allen Hamilton (BAH), Broadridge Financial Solutions (BR), Interpublic Group of Companies (IPG), Marsh & McLennan Companies (MMC), Fiserv (FI), Fidelity National Information Services (FIS), Global Payments (GPN), and Jack Henry & Associates (JKHY).

Paychex vs. Its Competitors

Automatic Data Processing (NASDAQ:ADP) and Paychex (NASDAQ:PAYX) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, media sentiment, valuation, risk, analyst recommendations and institutional ownership.

In the previous week, Automatic Data Processing had 34 more articles in the media than Paychex. MarketBeat recorded 64 mentions for Automatic Data Processing and 30 mentions for Paychex. Paychex's average media sentiment score of 1.45 beat Automatic Data Processing's score of 1.28 indicating that Paychex is being referred to more favorably in the news media.

Company Very Positive Positive Neutral Negative Very Negative Overall Sentiment
Automatic Data Processing
45 Very Positive mention(s)
5 Positive mention(s)
10 Neutral mention(s)
0 Negative mention(s)
0 Very Negative mention(s)
Positive
Paychex
25 Very Positive mention(s)
1 Positive mention(s)
4 Neutral mention(s)
0 Negative mention(s)
0 Very Negative mention(s)
Positive

Automatic Data Processing has higher revenue and earnings than Paychex. Automatic Data Processing is trading at a lower price-to-earnings ratio than Paychex, indicating that it is currently the more affordable of the two stocks.

CompanyGross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Automatic Data Processing$20.56B5.93$3.75B$9.9830.10
Paychex$5.57B9.01$1.66B$4.5730.49

Automatic Data Processing has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Paychex has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

80.0% of Automatic Data Processing shares are owned by institutional investors. Comparatively, 83.5% of Paychex shares are owned by institutional investors. 0.2% of Automatic Data Processing shares are owned by insiders. Comparatively, 11.4% of Paychex shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Paychex has a net margin of 29.75% compared to Automatic Data Processing's net margin of 19.84%. Automatic Data Processing's return on equity of 72.84% beat Paychex's return on equity.

Company Net Margins Return on Equity Return on Assets
Automatic Data Processing19.84% 72.84% 7.33%
Paychex 29.75%45.01%14.77%

Automatic Data Processing currently has a consensus price target of $314.33, indicating a potential upside of 4.62%. Paychex has a consensus price target of $150.20, indicating a potential upside of 7.79%. Given Paychex's higher possible upside, analysts plainly believe Paychex is more favorable than Automatic Data Processing.

Company Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Automatic Data Processing
1 Sell rating(s)
9 Hold rating(s)
2 Buy rating(s)
0 Strong Buy rating(s)
2.08
Paychex
1 Sell rating(s)
10 Hold rating(s)
0 Buy rating(s)
0 Strong Buy rating(s)
1.91

Automatic Data Processing pays an annual dividend of $6.16 per share and has a dividend yield of 2.1%. Paychex pays an annual dividend of $4.32 per share and has a dividend yield of 3.1%. Automatic Data Processing pays out 61.7% of its earnings in the form of a dividend. Paychex pays out 94.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Automatic Data Processing has increased its dividend for 49 consecutive years and Paychex has increased its dividend for 3 consecutive years.

Summary

Paychex beats Automatic Data Processing on 10 of the 19 factors compared between the two stocks.

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New MarketBeat Followers Over Time

This chart shows the number of new MarketBeat users adding PAYX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
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Media Sentiment Over Time

This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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PAYX vs. The Competition

MetricPaychexINTERNET SOFTWARE IndustryComputer SectorNASDAQ Exchange
Market Cap$50.20B$19.20B$29.13B$9.52B
Dividend Yield2.96%2.95%3.08%4.09%
P/E Ratio30.4985.9248.1323.81
Price / Sales9.01154.471,544.8266.04
Price / Cash22.8892.4138.0757.96
Price / Book12.168.087.415.54
Net Income$1.66B$341.62M$782.10M$259.28M
7 Day Performance-5.84%-6.56%-3.69%-4.64%
1 Month Performance-4.54%0.43%-0.16%4.41%
1 Year Performance9.48%56.28%52,681.95%17.95%

Paychex Competitors List

CompanyMarketRankShare PriceAnalysts' Price Target1Y Price PerformanceMarket CapRevenueP/E RatioEmployee CountIndicator(s)
PAYX
Paychex
4.2874 of 5 stars
$139.34
-3.5%
$150.20
+7.8%
+10.2%$50.20B$5.57B30.4919,000Positive News
High Trading Volume
ADP
Automatic Data Processing
4.5196 of 5 stars
$300.90
-0.3%
$309.62
+2.9%
+15.0%$122.14B$19.20B30.8064,000Trending News
Earnings Report
Analyst Forecast
CCRN
Cross Country Healthcare
3.5875 of 5 stars
$13.36
+4.5%
$17.93
+34.2%
-25.7%$437.94M$1.34B-25.218,205News Coverage
BAH
Booz Allen Hamilton
4.8503 of 5 stars
$109.23
-0.1%
$134.64
+23.3%
-23.2%$13.57B$11.98B15.0735,800Earnings Report
Dividend Announcement
Analyst Revision
BR
Broadridge Financial Solutions
4.4689 of 5 stars
$241.40
+1.0%
$250.83
+3.9%
+13.8%$28.35B$6.51B36.3014,600News Coverage
Positive News
Upcoming Earnings
IPG
Interpublic Group of Companies
4.6644 of 5 stars
$24.01
-0.7%
$32.06
+33.5%
-21.7%$8.88B$10.69B18.3353,300Positive News
Dividend Announcement
MMC
Marsh & McLennan Companies
4.6717 of 5 stars
$209.93
-1.1%
$239.79
+14.2%
-11.9%$103.20B$24.46B25.1790,000Positive News
Analyst Revision
FI
Fiserv
4.9911 of 5 stars
$165.46
-0.2%
$220.52
+33.3%
-16.1%$91.73B$20.46B29.2338,000Trending News
Analyst Forecast
FIS
Fidelity National Information Services
4.463 of 5 stars
$80.12
-0.3%
$91.00
+13.6%
+4.3%$42.10B$10.13B53.0650,000News Coverage
Positive News
Upcoming Earnings
Dividend Announcement
GPN
Global Payments
4.9941 of 5 stars
$81.16
-0.9%
$111.55
+37.4%
-20.5%$19.79B$10.11B13.0927,000Positive News
Upcoming Earnings
JKHY
Jack Henry & Associates
4.5001 of 5 stars
$176.86
-1.0%
$185.11
+4.7%
-1.1%$12.88B$2.22B30.137,170News Coverage
Positive News
Analyst Upgrade

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This page (NASDAQ:PAYX) was last updated on 8/2/2025 by MarketBeat.com Staff
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