Contrasting BlackSky Technology (NYSE:BKSY) & Paylocity (NASDAQ:PCTY)

Paylocity (NASDAQ:PCTY) and BlackSky Technology (NYSE:BKSY) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Risk & Volatility

Paylocity has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, BlackSky Technology has a beta of 2.84, indicating that its stock price is 184% more volatile than the S&P 500.

Profitability

This table compares Paylocity and BlackSky Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paylocity	15.23%	27.02%	5.78%
BlackSky Technology	-61.24%	-51.24%	-14.80%

Institutional & Insider Ownership

94.8% of Paylocity shares are owned by institutional investors. Comparatively, 27.1% of BlackSky Technology shares are owned by institutional investors. 19.4% of Paylocity shares are owned by insiders. Comparatively, 5.2% of BlackSky Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Paylocity and BlackSky Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paylocity	$1.77 billion	5.04	$269.74 million	$4.95	34.54
BlackSky Technology	$106.57 million	6.43	-$70.26 million	($1.82)	-9.21

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Paylocity and BlackSky Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paylocity	0	5	12	0	2.71
BlackSky Technology	1	1	2	1	2.60

Paylocity presently has a consensus target price of $174.88, indicating a potential upside of 2.29%. BlackSky Technology has a consensus target price of $39.33, indicating a potential upside of 134.77%. Given BlackSky Technology’s higher possible upside, analysts plainly believe BlackSky Technology is more favorable than Paylocity.

Summary

Paylocity beats BlackSky Technology on 10 of the 14 factors compared between the two stocks.

About Paylocity

Paylocity Holding Corporation engages in the provision of cloud-based human capital management and payroll software solutions for workforce in the United States. The company offers payroll software solution for global payroll, expense management, tax services, on demand payment, and garnishment managed services; and time and labor management software for time and attendance, scheduling, and time collection. It also provides human resources (HR) software solutions for employee self-service, compliance, HR edge, data analytics, and workflows and documents, as well as human resource management system; talent management system for recruiting, onboarding, performance, compensation, and learning; and benefits administration software. In addition, the company offers employee experience platform for community, employee voice, recognition and rewards, video, and modern workforce index; HR reporting software; and mobile HR solutions. Further, it provides implementation and training, client, and tax and regulatory services. The company serves for-profit and non-profit organizations across industries, including business services, financial services, healthcare, manufacturing, restaurants, retail, technology, and others. It sells its products through sales representatives. The company was founded in 1997 and is headquartered in Schaumburg, Illinois.

About BlackSky Technology

BlackSky Technology Inc. provides geospatial intelligence, imagery and related data analytic products and services, and mission systems that include the development, integration, and operation of satellite and ground systems for government and commercial customers in North America, the Middle East, the Asia Pacific, and internationally. The company's Spectra software platform processes a range of observations from its satellite constellation and various external data sources, including imaging, radar and radio frequency satellites, environmental sensors, asset tracking sensors, Internet-of-Things (IoT) connected devices, internet-enabled narrative sources, and a variety of geotemporal data feeds. It offers a range of services related to object, change and anomaly detection, site monitoring, and enhanced analytics, which helps to detect key pattern of life changes in critical locations, including strategic locations and infrastructure comprising ports, airports, and construction sites; retail activity; commodities stockpiles; and other sites that contain critical commodities and supply chain inventory. In addition, the company develops and delivers satellites and payload systems; and provides professional and engineering services. Its products and services are used in national security, supply chain intelligence, crisis management, critical infrastructure monitoring, economic intelligence, and other applications. BlackSky Technology Inc. was incorporated in 2018 and is headquartered in Herndon, Virginia.