ADP vs PAYX vs G vs PAYC vs PCTY

For growth investors, Paylocity Holding Corporation (PCTY) is the stronger pick with 13.

7% revenue growth year-over-year, versus 5. 6% for Paychex, Inc. (PAYX). Genpact Limited (G) offers the better valuation at 11. 0x trailing P/E (8. 6x forward), making it the more compelling value choice. Analysts rate Paylocity Holding Corporation (PCTY) a "Buy" — based on 41 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.

On trailing P/E, Genpact Limited (G) is the cheapest at 11.

0x versus Paylocity Holding Corporation at 27. 1x. On forward P/E, Genpact Limited is actually cheaper at 8. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Paycom Software, Inc. wins at 0. 49x versus Paychex, Inc. 's 2. 01x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Automatic Data Processing, Inc.

(ADP) delivered a total return of +23. 3%, compared to -56. 3% for Paycom Software, Inc. (PAYC). Over 10 years, the gap is even starker: PAYC returned +271. 8% versus G's +42. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Automatic Data Processing, Inc.

(ADP) is the lower-risk stock at 0. 37β versus Genpact Limited's 0. 67β — meaning G is approximately 79% more volatile than ADP relative to the S&P 500. On balance sheet safety, Paycom Software, Inc. (PAYC) carries a lower debt/equity ratio of 9% versus 146% for Automatic Data Processing, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Paylocity Holding Corporation (PCTY) is pulling ahead at 13.

7% versus 5. 6% for Paychex, Inc. (PAYX). On earnings-per-share growth, the picture is similar: Paylocity Holding Corporation grew EPS 10. 7% year-over-year, compared to -9. 4% for Paycom Software, Inc.. Over a 3-year CAGR, PCTY leads at 23. 2% 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.

Paychex, Inc.

(PAYX) is the more profitable company, earning 29. 7% net margin versus 10. 9% for Genpact Limited — meaning it keeps 29. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PAYX leads at 39. 6% versus 15. 0% for G. 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Paycom Software, Inc. (PAYC) is the more undervalued stock at a PEG of 0. 49x versus Paychex, Inc. 's 2. 01x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Genpact Limited (G) trades at 8. 6x forward P/E versus 19. 4x for Automatic Data Processing, Inc. — 10. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PCTY: 54. 0% to $168. 08.

In this comparison, PAYX (4.

2% yield), ADP (2. 7% yield), G (1. 9% yield), PAYC (1. 1% yield) pay a dividend. PCTY does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Automatic Data Processing, Inc.

(ADP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 37), 2. 7% yield, +192. 5% 10Y return). Both have compounded well over 10 years (ADP: +192. 5%, PCTY: +218. 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.

These companies operate in different sectors (ADP (Industrials) and PAYX (Industrials) and G (Technology) and PAYC (Technology) and PCTY (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: ADP is a mid-cap quality compounder stock; PAYX is a mid-cap income-oriented stock; G is a small-cap deep-value stock; PAYC is a small-cap deep-value stock; PCTY is a small-cap quality compounder stock. ADP, PAYX, G, PAYC pay a dividend while PCTY 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.