Liquid Holdings Group (OTCMKTS:LIQDQ) and Paychex (NASDAQ:PAYX) Critical Review

Liquid Holdings Group (OTCMKTS:LIQDQ) and Paychex (NASDAQ:PAYX) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Earnings and Valuation

This table compares Liquid Holdings Group and Paychex”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Liquid Holdings Group	N/A	N/A	N/A	N/A	N/A
Paychex	$6.51 billion	5.41	$1.76 billion	$4.89	20.11

Paychex has higher revenue and earnings than Liquid Holdings Group.

Insider & Institutional Ownership

83.5% of Paychex shares are held by institutional investors. 32.0% of Liquid Holdings Group shares are held by insiders. Comparatively, 0.8% of Paychex shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Liquid Holdings Group and Paychex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Liquid Holdings Group	N/A	N/A	N/A
Paychex	27.03%	50.90%	11.87%

Analyst Ratings

This is a summary of recent recommendations and price targets for Liquid Holdings Group and Paychex, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liquid Holdings Group	0	0	0	0	0.00
Paychex	4	10	2	1	2.00

Paychex has a consensus price target of $105.80, suggesting a potential upside of 7.60%. Given Paychex’s stronger consensus rating and higher possible upside, analysts plainly believe Paychex is more favorable than Liquid Holdings Group.

Summary

Paychex beats Liquid Holdings Group on 9 of the 10 factors compared between the two stocks.

About Liquid Holdings Group

Liquid Holdings Group, Inc. is in the process of liquidation of its assets. Previously, it was engaged in the provision of cloud-based trading and portfolio management solutions. The company was founded in 2012 and is based in Hoboken, New Jersey.

About Paychex

Paychex, Inc., together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing. The company also provides HR solutions, including integrated HCM technology solutions and HR advisory services through both virtual and on-site availability of a professionally trained HR representative, as well as HR support to non-payroll clients through its HR Partner Plus solution; and retirement services administration, such as plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services. In addition, it offers cloud-based HR administration software products for employee benefits management and administration, time and attendance, digital communication solutions, recruiting, and onboarding solutions; plan administration outsourcing and state unemployment insurance services; various business services to small to medium-sized businesses comprising payroll funding and outsourcing services, which include payroll processing, invoicing, and tax preparation; and payment processing services, financial fitness programs, and a small-business loan resource center. Further, the company provides insurance services for property and casualty coverage, such as workers’ compensation, business-owner policies, cyber security protection, and commercial auto, as well as health and benefits coverage, including health, dental, vision, and life. It markets and sells its services primarily through its direct sales force. The company was founded in 1971 and is headquartered in Rochester, New York.