Paychex (PAYX) Competitors and Alternatives 2024 (2024)

PAYX vs. TNET, NSP, PAE, FORR, PRGX, ADP, FI, FIS, GPN, and BR

Should you be buying Paychex stock or one of its competitors? The main competitors of Paychex include TriNet Group (TNET), Insperity (NSP), PAE (PAE), Forrester Research (FORR), PRGX Global (PRGX), Automatic Data Processing (ADP), Fiserv (FI), Fidelity National Information Services (FIS), Global Payments (GPN), and Broadridge Financial Solutions (BR).

Paychex vs.

Paychex (NASDAQ:PAYX) and TriNet Group (NYSE:TNET) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, community ranking, valuation, institutional ownership, risk, earnings, media sentiment and analyst recommendations.

TriNet Group received 10 more outperform votes than Paychex when rated by MarketBeat users. Likewise, 66.98% of users gave TriNet Group an outperform vote while only 42.56% of users gave Paychex an outperform vote.

CompanyUnderperformOutperform
PaychexOutperform Votes

343

42.56%

Underperform Votes

463

57.44%

TriNet GroupOutperform Votes

353

66.98%

Underperform Votes

174

33.02%

Paychex has a net margin of 31.86% compared to TriNet Group's net margin of 6.78%. TriNet Group's return on equity of 124.38% beat Paychex's return on equity.

Company Net Margins Return on Equity Return on Assets
Paychex31.86% 46.14% 13.85%
TriNet Group 6.78%124.38%10.24%

Paychex has higher revenue and earnings than TriNet Group. TriNet Group is trading at a lower price-to-earnings ratio than Paychex, indicating that it is currently the more affordable of the two stocks.

CompanyGross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Paychex$5.21B8.41$1.56B$4.5926.54
TriNet Group$4.94B1.08$375M$6.1017.25

In the previous week, Paychex had 6 more articles in the media than TriNet Group. MarketBeat recorded 10 mentions for Paychex and 4 mentions for TriNet Group. Paychex's average media sentiment score of 1.22 beat TriNet Group's score of 0.56 indicating that Paychex is being referred to more favorably in the media.

Company Very Positive Positive Neutral Negative Very Negative Overall Sentiment
Paychex

8 Very Positive mention(s)

0 Positive mention(s)

2 Neutral mention(s)

0 Negative mention(s)

0 Very Negative mention(s)

Positive
TriNet Group

1 Very Positive mention(s)

0 Positive mention(s)

3 Neutral mention(s)

0 Negative mention(s)

0 Very Negative mention(s)

Positive

83.5% of Paychex shares are owned by institutional investors. Comparatively, 96.8% of TriNet Group shares are owned by institutional investors. 11.5% of Paychex shares are owned by company insiders. Comparatively, 37.1% of TriNet Group 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 has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, TriNet Group has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.

Paychex presently has a consensus target price of $123.00, suggesting a potential upside of 0.96%. TriNet Group has a consensus target price of $117.50, suggesting a potential upside of 11.64%. Given TriNet Group's stronger consensus rating and higher possible upside, analysts clearly believe TriNet Group is more favorable than Paychex.

Company Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paychex

2 Sell rating(s)

9 Hold rating(s)

0 Buy rating(s)

0 Strong Buy rating(s)

1.82
TriNet Group

1 Sell rating(s)

2 Hold rating(s)

4 Buy rating(s)

0 Strong Buy rating(s)

2.43

Paychex pays an annual dividend of $3.92 per share and has a dividend yield of 3.2%. TriNet Group pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. Paychex pays out 85.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TriNet Group pays out 16.4% of its earnings in the form of a dividend.

Summary

TriNet Group beats Paychex on 11 of the 20 factors compared between the two stocks.

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Paychex (PAYX) Competitors and Alternatives 2024 (3)

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New MarketBeat Followers Over Time

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.

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Media Sentiment Over Time

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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PAYX vs. The Competition

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MetricPaychexEngineering, accounting, research, management & related services IndustryBusiness SectorNASDAQ Exchange
Market Cap$43.85B$22.10B$6.47B$8.18B
Dividend Yield3.26%3.26%2.88%4.02%
P/E Ratio26.54308.7738.4618.46
Price / Sales8.414.561,301.1471.98
Price / Cash22.3314.1228.1631.30
Price / Book12.577.004.564.39
Net Income$1.56B$780.18M$120.58M$215.75M
7 Day Performance1.39%-0.03%0.14%-0.35%
1 Month Performance0.03%-3.64%-0.89%0.31%
1 Year Performance8.86%-16.27%2.86%2.58%

Paychex Competitors List

Export to Excel

CompanyMarketRankShare PriceAnalysts' Price Target1Y Price PerformanceMarket CapRevenueP/E RatioEmployee CountIndicator(s)
TNETTriNet Group3.3313 of 5 stars$105.25
-0.2%
$117.50
+11.6%
+10.3%$5.32B$4.94B17.253,600High Trading Volume
NSPInsperity3.9928 of 5 stars$96.58
+1.7%
$109.50
+13.4%
-19.9%$3.64B$6.52B23.614,400Positive News
PAEPAE0 of 5 stars$10.05
flat
N/A+0.0%$935.83M$2.71B18.9620,000
FORRForrester Research3.763 of 5 stars$17.73
flat
$37.00
+108.7%
-40.2%$338.82M$480.78M591.001,744
PRGXPRGX Global0 of 5 stars$7.71
flat
N/A+0.0%$181.66M$169.76M-36.711,500
ADPAutomatic Data Processing4.5009 of 5 stars$247.97
+0.9%
$255.42
+3.0%
+14.4%$101.49B$18.01B27.6863,000
FIFiserv4.0242 of 5 stars$150.56
+0.8%
$164.83
+9.5%
+31.8%$88.09B$19.09B28.1442,000Positive News
FISFidelity National Information Services4.5494 of 5 stars$76.38
+0.6%
$78.74
+3.1%
+38.9%$42.49B$9.82B-7.4760,000Positive News
GPNGlobal Payments4.9973 of 5 stars$97.76
-0.8%
$149.11
+52.5%
-3.0%$24.95B$9.65B19.4027,000Positive News
BRBroadridge Financial Solutions3.8382 of 5 stars$197.55
-0.2%
$206.67
+4.6%
+28.0%$23.35B$6.06B33.7114,700Analyst Upgrade
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Paychex (PAYX) Competitors and Alternatives 2024 (2024)

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