BL vs PCTY vs PAYC vs WDAY

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

7% revenue growth year-over-year, versus 7. 2% for BlackLine, Inc. (BL). Paycom Software, Inc. (PAYC) offers the better valuation at 17. 1x trailing P/E (13. 2x 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, Paycom Software, Inc.

(PAYC) is the cheapest at 17. 1x versus BlackLine, Inc. at 79. 9x. On forward P/E, Workday, Inc. is actually cheaper at 12. 5x — notably different from the trailing picture, reflecting expected earnings growth. 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 Paylocity Holding Corporation's 0. 50x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Paylocity Holding Corporation (PCTY) delivered a total return of -35.

2%, compared to -71. 0% for BlackLine, Inc. (BL). Over 10 years, the gap is even starker: PAYC returned +271. 8% versus BL's +31. 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), Paylocity Holding Corporation (PCTY) is the lower-risk stock at 0.

43β versus BlackLine, Inc. 's 0. 93β — meaning BL is approximately 116% more volatile than PCTY relative to the S&P 500. On balance sheet safety, Paycom Software, Inc. (PAYC) carries a lower debt/equity ratio of 9% versus 3% for BlackLine, 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 7. 2% for BlackLine, Inc. (BL). On earnings-per-share growth, the picture is similar: Workday, Inc. grew EPS 32. 3% year-over-year, compared to -73. 1% for BlackLine, 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.

Paycom Software, Inc.

(PAYC) is the more profitable company, earning 22. 1% net margin versus 3. 5% for BlackLine, 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 4. 8% for BL. 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 Paylocity Holding Corporation's 0. 50x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Workday, Inc. (WDAY) trades at 12. 5x forward P/E versus 14. 0x for Paylocity Holding Corporation — 1. 6x 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, PAYC (1.

1% yield) pays a dividend. BL, PCTY, WDAY do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Paycom Software, Inc.

(PAYC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 59), 1. 1% yield, +271. 8% 10Y return). Both have compounded well over 10 years (PAYC: +271. 8%, BL: +31. 5%), 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.

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: BL is a small-cap quality compounder stock; PCTY is a small-cap quality compounder stock; PAYC is a small-cap deep-value stock; WDAY is a mid-cap quality compounder stock. PAYC pays a dividend while BL, PCTY, WDAY do 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.