This is therefore a contrasting of the institutional ownership, profitability, risk, dividends, analyst recommendations, earnings and valuation in Paycom Software Inc. (NYSE:PAYC) and Cadence Design Systems Inc. (NASDAQ:CDNS). The two are both Application Software companies that compete with one another.
Valuation and Earnings
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Paycom Software Inc.||224||2.41||48.52M||2.45||98.23|
|Cadence Design Systems Inc.||67||2.90||275.46M||1.50||49.14|
In table 1 we can see Paycom Software Inc. and Cadence Design Systems Inc.’s top-line revenue, earnings per share (EPS) and valuation. Cadence Design Systems Inc. seems to has lower revenue and earnings compared to Paycom Software Inc. The business that Presently has a higher P/E ratio is considered the more expensive of the two businesses. Paycom Software Inc.’s shares have been trading at higher P/E ratio which means it is presently more expensive than Cadence Design Systems Inc.
Table 2 demonstrates the net margins, return on equity and return on assets of Paycom Software Inc. and Cadence Design Systems Inc.
|Net Margins||Return on Equity||Return on Assets|
|Paycom Software Inc.||21,691,702.43%||0%||0%|
|Cadence Design Systems Inc.||413,914,350.11%||31.9%||17.2%|
Volatility & Risk
Paycom Software Inc. is 56.00% more volatile than S&P 500 due to its 1.56 beta. Cadence Design Systems Inc.’s 1.15 beta is the reason why it is 15.00% more volatile than S&P 500.
Paycom Software Inc.’s Current Ratio is 1 while its Quick Ratio is 1. On the competitive side is, Cadence Design Systems Inc. which has a 1.6 Current Ratio and a 1.5 Quick Ratio. Cadence Design Systems Inc. is better positioned to pay off short and long-term obligations compared to Paycom Software Inc.
The table delivered features the ratings and recommendations for Paycom Software Inc. and Cadence Design Systems Inc.
|Sell Ratings||Hold Ratings||Buy Ratings||Rating Score|
|Paycom Software Inc.||0||2||0||2.00|
|Cadence Design Systems Inc.||0||2||0||2.00|
$209 is Paycom Software Inc.’s average price target while its potential downside is -5.01%. Cadence Design Systems Inc. on the other hand boasts of a $70 average price target and a 6.22% potential upside. Based on the results delivered earlier, Cadence Design Systems Inc. is looking more favorable than Paycom Software Inc., analysts view.
Institutional and Insider Ownership
Paycom Software Inc. and Cadence Design Systems Inc. has shares held by institutional investors as follows: 76.5% and 91.2%. 8.4% are Paycom Software Inc.’s share held by insiders. Insiders Competitively, held 1.1% of Cadence Design Systems Inc. shares.
Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.
|Performance (W)||Performance (M)||Performance (Q)||Performance (HY)||Performance (Y)||Performance (YTD)|
|Paycom Software Inc.||2.39%||6.06%||19.5%||65.4%||133.47%||96.61%|
|Cadence Design Systems Inc.||-2.48%||0.76%||7.83%||55.67%||68.32%||69.99%|
For the past year Paycom Software Inc. was more bullish than Cadence Design Systems Inc.
On 8 of the 14 factors Cadence Design Systems Inc. beats Paycom Software Inc.
Paycom Software, Inc. provides cloud-based human capital management (HCM) software solution that is delivered as software-as-a-service for small to mid-sized companies in the United States. It provides functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The companyÂ’s HCM solution offers a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, E-Verify, and tax credit service applications; and time and labor management, such as time and attendance, scheduling/schedule exchange, time-off requests, labor allocation, labor management reports/push reporting, and geofencing/geotracking applications. Its HCM solution also provides payroll applications comprising payroll and tax management, Paycom Pay, expense management, garnishment management, and GL Concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, executive dashboard, and Paycom learning applications. In addition, the companyÂ’s HCM solution offers HR management applications, which comprise document and task management, government and compliance, benefits administration/benefits to carrier, COBRA administration, personnel action forms, surveys, and affordable care act applications. Paycom Software, Inc. was founded in 1998 and is headquartered in Oklahoma City, Oklahoma.
Cadence Design Systems, Inc. provides electronic design automation software, emulation and prototyping hardware, system interconnect, and analysis worldwide. It offers functional verification, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Incisive, a functional verification platform; and Palladium, a verification computing platform. The company also provides digital integrated circuit (IC) design products, such as logic design products for chip planning, design, verification, and test technologies and services; physical implementation tools, including place and route, signal integrity, optimization, and multiple patterning preparation; and signoff products to signoff the design as ready for manufacture by a silicon foundry, as well as design for manufacturing products for use in the product development process. In addition, it offers custom IC design and verification products to create schematic and physical representations of circuits down to the transistor level for analog, mixed-signal, custom digital, memory, and RF designs; and system interconnect design products to develop printed circuit boards and IC packages. Further, the company provides design IP products consisting of pre-verified and customizable functional blocks to integrate into customerÂ’s system-on-chips; and VIP and memory models for use in system-level verification to model correct behavior of full systems interacting with their environments. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. The company was founded in 1988 and is headquartered in San Jose, California.
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