APPF
AppFolio, Inc.
Software - Application
Market Cap$6.02B
5Y Perf.+5.5%
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Stock Comparison
APPF vs PAYC
Revenue, margins, valuation, and 5-year total return — side by side.
PAYC
Paycom Software, Inc.
Software - Application
Market Cap$6.86B
5Y Perf.-57.5%
APPF vs PAYC — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | APPF | PAYC |
|---|---|---|
| Industry | Software - Application | Software - Application |
| Market Cap | $6.02B | $6.86B |
| Revenue (TTM) | $995M | $2.09B |
| Net Income (TTM) | $152M | $470M |
| Gross Margin | 63.2% | 81.0% |
| Operating Margin | 17.1% | 28.3% |
| Forward P/E | 24.6x | 12.0x |
| Total Debt | $71M | $152M |
| Cash & Equiv. | $107M | $370M |
APPF vs PAYC — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
APPF
PAYC
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| AppFolio, Inc. (APPF) | 100 | 105.5 | +5.5% |
| Paycom Software, In… (PAYC) | 100 | 42.5 | -57.5% |
Price return only. Dividends and distributions are not included.
Quick Verdict: APPF vs PAYC
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: PAYC leads in 4 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. AppFolio, Inc. is the stronger pick specifically for growth and revenue expansion and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
APPF
AppFolio, Inc.
The Growth Play
APPF is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 19.7%, EPS growth -30.1%, 3Y rev CAGR 26.3%
- 12.5% 10Y total return vs PAYC's 250.2%
- 19.7% revenue growth vs PAYC's 8.9%
Best for: growth exposure and long-term compounding
PAYC
Paycom Software, Inc.
The Income Pick
PAYC carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- Dividend streak 3 yrs, beta 0.59, yield 1.2%
- Lower volatility, beta 0.59, Low D/E 8.8%, current ratio 1.09x
- Beta 0.59, yield 1.2%, current ratio 1.09x
Best for: income & stability and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | APPF | 19.7% revenue growth vs PAYC's 8.9% |
| Value | PAYC | Lower P/E (12.0x vs 24.6x) |
| Quality / Margins | PAYC | 22.4% margin vs APPF's 15.3% |
| Stability / Safety | PAYC | Beta 0.59 vs APPF's 0.71, lower leverage |
| Dividends | PAYC | 1.2% yield; 3-year raise streak; the other pay no meaningful dividend |
| Momentum (1Y) | APPF | -21.6% vs PAYC's -43.9% |
| Efficiency (ROA) | APPF | 24.2% ROA vs PAYC's 9.1%, ROIC 22.4% vs 30.7% |
APPF vs PAYC — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
APPF vs PAYC — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLPAYCLAGGINGAPPF
APPFAppFolio, Inc.
1leads
PAYCPaycom Software, Inc.
2leads
6 Total Categories
CATEGORYLEADERvs APPFMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
Tied
—
Valuation MetricsMultiples, price ratios, and targets
PAYC6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
PAYC5/8
Total Returns1Y, 3Y, 5Y total returns with dividends
APPF5/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
—
—
Income & Cash Flow (Last 12 Months)
Evenly matched — APPF and PAYC each lead in 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
PAYC is the larger business by revenue, generating $2.1B annually — 2.1x APPF's $995M. PAYC is the more profitable business, keeping 22.4% of every revenue dollar as net income compared to APPF's 15.3%. On growth, APPF holds the edge at +20.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | APPFAppFolio, Inc. | PAYCPaycom Software, … |
|---|---|---|
| RevenueTrailing 12 months | $995M | $2.1B |
| EBITDAEarnings before interest/tax | $192M | $753M |
| Net IncomeAfter-tax profit | $152M | $470M |
| Free Cash FlowCash after capex | $234M | $444M |
| Gross MarginGross profit ÷ Revenue | +63.2% | +81.0% |
| Operating MarginEBIT ÷ Revenue | +17.1% | +28.3% |
| Net MarginNet income ÷ Revenue | +15.3% | +22.4% |
| FCF MarginFCF ÷ Revenue | +23.5% | +21.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +20.4% | +7.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +37.2% | +22.6% |
Evenly matched — APPF and PAYC each lead in 3 of 6 comparable metrics.
Valuation Metrics
PAYC leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 15.6x trailing earnings, PAYC trades at a 64% valuation discount to APPF's 43.1x P/E. On an enterprise value basis, PAYC's 8.9x EV/EBITDA is more attractive than APPF's 34.1x.
| Metric | APPFAppFolio, Inc. | PAYCPaycom Software, … |
|---|---|---|
| Market CapShares × price | $6.0B | $6.9B |
| Enterprise ValueMkt cap + debt − cash | $6.0B | $6.6B |
| Trailing P/EPrice ÷ TTM EPS | 43.09x | 15.63x |
| Forward P/EPrice ÷ next-FY EPS est. | 24.56x | 12.02x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.58x |
| EV / EBITDAEnterprise value multiple | 34.06x | 8.93x |
| Price / SalesMarket cap ÷ Revenue | 6.33x | 3.34x |
| Price / BookPrice ÷ Book value/share | 11.19x | 4.09x |
| Price / FCFMarket cap ÷ FCF | 25.18x | 16.80x |
PAYC leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
PAYC leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
PAYC delivers a 31.0% return on equity — every $100 of shareholder capital generates $31 in annual profit, vs $31 for APPF. PAYC carries lower financial leverage with a 0.09x debt-to-equity ratio, signaling a more conservative balance sheet compared to APPF's 0.13x. On the Piotroski fundamental quality scale (0–9), APPF scores 5/9 vs PAYC's 4/9, reflecting solid financial health.
| Metric | APPFAppFolio, Inc. | PAYCPaycom Software, … |
|---|---|---|
| ROE (TTM)Return on equity | +30.9% | +31.0% |
| ROA (TTM)Return on assets | +24.2% | +9.1% |
| ROICReturn on invested capital | +22.4% | +30.7% |
| ROCEReturn on capital employed | +25.9% | +27.1% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 |
| Debt / EquityFinancial leverage | 0.13x | 0.09x |
| Net DebtTotal debt minus cash | -$36M | -$218M |
| Cash & Equiv.Liquid assets | $107M | $370M |
| Total DebtShort + long-term debt | $71M | $152M |
| Interest CoverageEBIT ÷ Interest expense | — | 332.23x |
PAYC leads this category, winning 5 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
APPF leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in APPF five years ago would be worth $12,779 today (with dividends reinvested), compared to $4,010 for PAYC. Over the past 12 months, APPF leads with a -21.6% total return vs PAYC's -43.9%. The 3-year compound annual growth rate (CAGR) favors APPF at 6.6% vs PAYC's -21.8% — a key indicator of consistent wealth creation.
| Metric | APPFAppFolio, Inc. | PAYCPaycom Software, … |
|---|---|---|
| YTD ReturnYear-to-date | -27.4% | -16.9% |
| 1-Year ReturnPast 12 months | -21.6% | -43.9% |
| 3-Year ReturnCumulative with dividends | +21.3% | -52.2% |
| 5-Year ReturnCumulative with dividends | +27.8% | -59.9% |
| 10-Year ReturnCumulative with dividends | +1247.1% | +250.2% |
| CAGR (3Y)Annualised 3-year return | +6.6% | -21.8% |
APPF leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
Evenly matched — APPF and PAYC each lead in 1 of 2 comparable metrics.
Risk & Volatility
PAYC is the less volatile stock with a 0.59 beta — it tends to amplify market swings less than APPF's 0.71 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. APPF currently trades 51.3% from its 52-week high vs PAYC's 47.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | APPFAppFolio, Inc. | PAYCPaycom Software, … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.71x | 0.59x |
| 52-Week HighHighest price in past year | $326.04 | $267.76 |
| 52-Week LowLowest price in past year | $142.72 | $104.90 |
| % of 52W HighCurrent price vs 52-week peak | +51.3% | +47.2% |
| RSI (14)Momentum oscillator 0–100 | 60.6 | 58.8 |
| Avg Volume (50D)Average daily shares traded | 350K | 1.4M |
Evenly matched — APPF and PAYC each lead in 1 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates APPF as "Buy" and PAYC as "Hold". Consensus price targets imply 41.6% upside for APPF (target: $237) vs 18.2% for PAYC (target: $149). PAYC is the only dividend payer here at 1.20% yield — a key consideration for income-focused portfolios.
| Metric | APPFAppFolio, Inc. | PAYCPaycom Software, … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $236.67 | $149.36 |
| # AnalystsCovering analysts | 13 | 36 |
| Dividend YieldAnnual dividend ÷ price | — | +1.2% |
| Dividend StreakConsecutive years of raises | — | 3 |
| Dividend / ShareAnnual DPS | — | $1.51 |
| Buyback YieldShare repurchases ÷ mkt cap | +3.1% | +4.7% |
Insufficient data to determine a leader in this category.
Key Takeaway
PAYC leads in 2 of 6 categories (Valuation Metrics, Profitability & Efficiency). APPF leads in 1 (Total Returns). 2 tied.
Best OverallPaycom Software, Inc. (PAYC)Leads 2 of 6 categories
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APPF vs PAYC: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is APPF or PAYC a better buy right now?
For growth investors, AppFolio, Inc.
(APPF) is the stronger pick with 19. 7% revenue growth year-over-year, versus 8. 9% for Paycom Software, Inc. (PAYC). Paycom Software, Inc. (PAYC) offers the better valuation at 15. 6x trailing P/E (12. 0x forward), making it the more compelling value choice. Analysts rate AppFolio, Inc. (APPF) a "Buy" — based on 13 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — APPF or PAYC?
On trailing P/E, Paycom Software, Inc.
(PAYC) is the cheapest at 15. 6x versus AppFolio, Inc. at 43. 1x. On forward P/E, Paycom Software, Inc. is actually cheaper at 12. 0x.
03Which is the better long-term investment — APPF or PAYC?
Over the past 5 years, AppFolio, Inc.
(APPF) delivered a total return of +27. 8%, compared to -59. 9% for Paycom Software, Inc. (PAYC). Over 10 years, the gap is even starker: APPF returned +1247% versus PAYC's +250. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — APPF or PAYC?
By beta (market sensitivity over 5 years), Paycom Software, Inc.
(PAYC) is the lower-risk stock at 0. 59β versus AppFolio, Inc. 's 0. 71β — meaning APPF is approximately 21% more volatile than PAYC relative to the S&P 500. On balance sheet safety, Paycom Software, Inc. (PAYC) carries a lower debt/equity ratio of 9% versus 13% for AppFolio, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — APPF or PAYC?
By revenue growth (latest reported year), AppFolio, Inc.
(APPF) is pulling ahead at 19. 7% versus 8. 9% for Paycom Software, Inc. (PAYC). On earnings-per-share growth, the picture is similar: Paycom Software, Inc. grew EPS -9. 4% year-over-year, compared to -30. 1% for AppFolio, Inc.. Over a 3-year CAGR, APPF leads at 26. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — APPF or PAYC?
Paycom Software, Inc.
(PAYC) is the more profitable company, earning 22. 1% net margin versus 14. 8% for AppFolio, Inc. — meaning it keeps 22. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PAYC leads at 27. 6% versus 16. 1% for APPF. At the gross margin level — before operating expenses — PAYC leads at 78. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is APPF or PAYC more undervalued right now?
On forward earnings alone, Paycom Software, Inc.
(PAYC) trades at 12. 0x forward P/E versus 24. 6x for AppFolio, Inc. — 12. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for APPF: 41. 6% to $236. 67.
08Which pays a better dividend — APPF or PAYC?
In this comparison, PAYC (1.
2% yield) pays a dividend. APPF does not pay a meaningful dividend and should not be held primarily for income.
09Is APPF or PAYC better for a retirement portfolio?
For long-horizon retirement investors, AppFolio, Inc.
(APPF) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 71), +1247% 10Y return). Both have compounded well over 10 years (APPF: +1247%, PAYC: +250. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between APPF and PAYC?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: APPF is a small-cap high-growth stock; PAYC is a small-cap deep-value stock. PAYC pays a dividend while APPF does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(APPF: 20.4% · PAYC: 7.8%)Net Margin>
%
(APPF: 15.3% · PAYC: 22.4%)P/E Ratio<
x
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