Financial Contrast: Amber Road (AMBR) & Paylocity Holding Corporation (PCTY)

Amber Road (NYSE: AMBR) and Paylocity Holding Corporation (NASDAQ:PCTY) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Volatility & Risk

Amber Road has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Paylocity Holding Corporation has a beta of 2.24, meaning that its share price is 124% more volatile than the S&P 500.

Insider and Institutional Ownership

71.2% of Amber Road shares are held by institutional investors. Comparatively, 59.9% of Paylocity Holding Corporation shares are held by institutional investors. 13.1% of Amber Road shares are held by insiders. Comparatively, 48.8% of Paylocity Holding Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Amber Road and Paylocity Holding Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amber Road -20.19% -53.22% -14.53%
Paylocity Holding Corporation 3.11% 7.98% 0.93%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Amber Road and Paylocity Holding Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amber Road 0 0 3 0 3.00
Paylocity Holding Corporation 0 5 9 0 2.64

Amber Road presently has a consensus target price of $12.00, suggesting a potential upside of 84.62%. Paylocity Holding Corporation has a consensus target price of $52.92, suggesting a potential upside of 9.26%. Given Amber Road’s stronger consensus rating and higher probable upside, equities analysts plainly believe Amber Road is more favorable than Paylocity Holding Corporation.

Valuation & Earnings

This table compares Amber Road and Paylocity Holding Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Amber Road $73.16 million 2.42 -$18.72 million ($0.57) -11.40
Paylocity Holding Corporation $300.01 million 8.48 $6.71 million $0.18 269.06

Paylocity Holding Corporation has higher revenue and earnings than Amber Road. Amber Road is trading at a lower price-to-earnings ratio than Paylocity Holding Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Paylocity Holding Corporation beats Amber Road on 10 of the 13 factors compared between the two stocks.

Amber Road Company Profile

Amber Road, Inc. is a provider of cloud-based global trade management (GTM) solutions. The Company’s GTM solutions include modules for logistics contract and rate management, supply chain visibility and event management, international trade compliance, and Global Knowledge trade content database to importers and exporters, non-vessel owning common carriers (resellers), and ocean carriers. The Company delivers its GTM solution using a software-as-a-service (SaaS) model. The Company’s solution automates the global supply chain across sourcing, logistics, cross-border trade and regulatory compliance activities. The Company’s GTM solution combines enterprise-class software, trade content sourced from government agencies and transportation providers in approximately 145 countries, and a global supply chain network connecting its customers with the trading partners, including suppliers, freight forwarders, customs brokers and transportation carriers.

Paylocity Holding Corporation Company Profile

Paylocity Holding Corporation is a cloud-based provider of payroll and human capital management (HCM), software solutions for medium-sized organizations. The Company’s services are provided in a software-as-a-service delivery model utilizing its cloud-based platform. The cloud-based platform provides a suite of applications using a multi-tenant architecture. The cloud-based platform features a suite of unified payroll and HCM applications. The Company, through cloud-based platform, offers various products, which include Paylocity Web Pay, Paylocity HR, Paylocity Affordable Care Act Enhanced, Paylocity Impressions, Performance Management, Self-Service HR Portals, Paylocity Recruiting, Paylocity Web Time, Paylocity Web Onboarding, and Paylocity Web Benefits and Paylocity Enterprise Benefits, Powered by bswift. The multi-tenant software platform is configurable and includes a unified suite of payroll and HCM applications, such as time and labor tracking, benefits and talent management.

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