PAYX vs. WCN, FIS, SQ, PLTR, NU, CPRT, IT, GPN, MRVL, and VRSK
Should you be buying Paychex stock or one of its competitors? The main competitors of Paychex include Waste Connections (WCN), Fidelity National Information Services (FIS), Block (SQ), Palantir Technologies (PLTR), NU (NU), Copart (CPRT), Gartner (IT), Global Payments (GPN), Marvell Technology (MRVL), and Verisk Analytics (VRSK). These companies are all part of the "business services" sector.
Paychex (NASDAQ:PAYX) and Waste Connections (NYSE:WCN) are both large-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, media sentiment, profitability, risk, earnings and community ranking.
Paychex has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Waste Connections has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.
Waste Connections received 502 more outperform votes than Paychex when rated by MarketBeat users. Likewise, 75.24% of users gave Waste Connections an outperform vote while only 42.61% of users gave Paychex an outperform vote.
In the previous week, Waste Connections had 9 more articles in the media than Paychex. MarketBeat recorded 18 mentions for Waste Connections and 9 mentions for Paychex. Paychex's average media sentiment score of 0.67 beat Waste Connections' score of 0.42 indicating that Paychex is being referred to more favorably in the media.
Paychex currently has a consensus price target of $123.00, indicating a potential upside of 2.55%. Waste Connections has a consensus price target of $179.33, indicating a potential upside of 9.08%. Given Waste Connections' stronger consensus rating and higher probable upside, analysts clearly believe Waste Connections is more favorable than Paychex.
83.5% of Paychex shares are owned by institutional investors. Comparatively, 86.1% of Waste Connections shares are owned by institutional investors. 11.5% of Paychex shares are owned by company insiders. Comparatively, 0.3% of Waste Connections shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Paychex pays an annual dividend of $3.56 per share and has a dividend yield of 3.0%. Waste Connections pays an annual dividend of $1.14 per share and has a dividend yield of 0.7%. Paychex pays out 77.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Waste Connections pays out 37.0% of its earnings in the form of a dividend.
Paychex has a net margin of 31.86% compared to Waste Connections' net margin of 9.70%. Paychex's return on equity of 46.14% beat Waste Connections' return on equity.
Paychex has higher earnings, but lower revenue than Waste Connections. Paychex is trading at a lower price-to-earnings ratio than Waste Connections, indicating that it is currently the more affordable of the two stocks.
Summary
Waste Connections beats Paychex on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding PAYX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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