SPSC vs ALKT vs NCNO vs PCTY

For growth investors, Alkami Technology, Inc.

(ALKT) is the stronger pick with 32. 9% revenue growth year-over-year, versus 13. 5% for nCino, Inc. (NCNO). SPS Commerce, Inc. (SPSC) offers the better valuation at 23. 2x trailing P/E (12. 7x forward), making it the more compelling value choice. Analysts rate Alkami Technology, Inc. (ALKT) a "Buy" — based on 12 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, SPS Commerce, Inc.

(SPSC) is the cheapest at 23. 2x versus Paylocity Holding Corporation at 27. 1x. On forward P/E, SPS Commerce, Inc. is actually cheaper at 12. 7x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Paylocity Holding Corporation wins at 0. 50x versus SPS Commerce, Inc. 's 0. 89x — 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 -68. 6% for nCino, Inc. (NCNO). Over 10 years, the gap is even starker: PCTY returned +218. 2% versus NCNO's -80. 6%. 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 Alkami Technology, Inc. 's 1. 30β — meaning ALKT is approximately 204% more volatile than PCTY relative to the S&P 500. On balance sheet safety, SPS Commerce, Inc. (SPSC) carries a lower debt/equity ratio of 1% versus 98% for Alkami Technology, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Alkami Technology, Inc.

(ALKT) is pulling ahead at 32. 9% versus 13. 5% for nCino, Inc. (NCNO). On earnings-per-share growth, the picture is similar: SPS Commerce, Inc. grew EPS 20. 6% year-over-year, compared to -12. 2% for Alkami Technology, Inc.. Over a 3-year CAGR, ALKT leads at 29. 5% 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.

Paylocity Holding Corporation (PCTY) is the more profitable company, earning 14.

2% net margin versus -10. 7% for Alkami Technology, Inc. — meaning it keeps 14. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PCTY leads at 19. 1% versus -12. 1% for ALKT. At the gross margin level — before operating expenses — PCTY leads at 68. 8%, 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, Paylocity Holding Corporation (PCTY) is the more undervalued stock at a PEG of 0. 50x versus SPS Commerce, Inc. 's 0. 89x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, SPS Commerce, Inc. (SPSC) trades at 12. 7x forward P/E versus 21. 7x for Alkami Technology, Inc. — 9. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NCNO: 81. 8% to $32. 33.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Paylocity Holding Corporation (PCTY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

43), +218. 2% 10Y return). Both have compounded well over 10 years (PCTY: +218. 2%, ALKT: -59. 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: SPSC is a small-cap high-growth stock; ALKT is a small-cap high-growth stock; NCNO is a small-cap quality compounder stock; PCTY is a small-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.