PAYC vs ORCL

For growth investors, Paycom Software, Inc.

(PAYC) is the stronger pick with 11. 2% revenue growth year-over-year, versus 8. 4% for Oracle Corporation (ORCL). Paycom Software, Inc. (PAYC) offers the better valuation at 14. 8x trailing P/E (12. 0x forward), making it the more compelling value choice. Analysts rate Oracle Corporation (ORCL) a "Buy" — based on 86 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 14. 8x versus Oracle Corporation at 42. 7x. On forward P/E, Paycom Software, Inc. is actually cheaper at 12. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Paycom Software, Inc. wins at 0. 51x versus Oracle Corporation's 3. 65x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Oracle Corporation (ORCL) delivered a total return of +144.

2%, compared to -60. 0% for Paycom Software, Inc. (PAYC). Over 10 years, the gap is even starker: ORCL returned +423. 1% 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.

By beta (market sensitivity over 5 years), Paycom Software, Inc.

(PAYC) is the lower-risk stock at 0. 59β versus Oracle Corporation's 1. 59β — meaning ORCL is approximately 171% 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 5% versus 5% for Oracle Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Paycom Software, Inc.

(PAYC) is pulling ahead at 11. 2% versus 8. 4% for Oracle Corporation (ORCL). On earnings-per-share growth, the picture is similar: Paycom Software, Inc. grew EPS 51. 7% year-over-year, compared to 17. 0% for Oracle Corporation. Over a 3-year CAGR, PAYC leads at 21. 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.

Paycom Software, Inc.

(PAYC) is the more profitable company, earning 26. 7% net margin versus 21. 7% for Oracle Corporation — meaning it keeps 26. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PAYC leads at 33. 7% versus 30. 8% for ORCL. At the gross margin level — before operating expenses — PAYC leads at 82. 2%, 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. 51x versus Oracle Corporation's 3. 65x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Paycom Software, Inc. (PAYC) trades at 12. 0x forward P/E versus 25. 9x for Oracle Corporation — 13. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ORCL: 38. 7% to $257. 19.

All stocks in this comparison pay dividends.

Paycom Software, Inc. (PAYC) offers the highest yield at 1. 1%, versus 0. 9% for Oracle Corporation (ORCL).

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, +250. 2% 10Y return). Oracle Corporation (ORCL) carries a higher beta of 1. 59 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (PAYC: +250. 2%, ORCL: +423. 1%), 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: PAYC is a small-cap deep-value stock; ORCL is a large-cap quality compounder stock. 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.