Contrasting Wellchange (NASDAQ:WCT) & Paycom Software (NYSE:PAYC)

Wellchange (NASDAQ:WCT) and Paycom Software (NYSE:PAYC) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Earnings and Valuation

This table compares Wellchange and Paycom Software”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wellchange	$1.35 million	3.43	-$7.32 million	N/A	N/A
Paycom Software	$2.05 billion	3.13	$453.40 million	$8.65	15.60

Paycom Software has higher revenue and earnings than Wellchange.

Risk & Volatility

Wellchange has a beta of 2.56, suggesting that its stock price is 156% more volatile than the S&P 500. Comparatively, Paycom Software has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Wellchange and Paycom Software, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wellchange	1	0	0	0	1.00
Paycom Software	1	7	5	1	2.43

Paycom Software has a consensus price target of $159.67, suggesting a potential upside of 18.35%. Given Paycom Software’s stronger consensus rating and higher possible upside, analysts clearly believe Paycom Software is more favorable than Wellchange.

Institutional and Insider Ownership

87.8% of Paycom Software shares are held by institutional investors. 13.2% of Paycom Software shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Wellchange and Paycom Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wellchange	N/A	N/A	N/A
Paycom Software	22.44%	28.34%	8.29%

Summary

Paycom Software beats Wellchange on 11 of the 13 factors compared between the two stocks.

About Wellchange

Wellchange Holdings Company Limited, through its subsidiaries, operates as an enterprise software solution services provider in Hong Kong. The company provides tailor-made software solutions, cloud-based software-as-a-service (SaaS) solutions, and white-labelled software design and development services. The company also operates MR. CLOUD, a cloud-based SaaS enterprise resource planning software platform based on subscription services to support back-office and front-office functions, such as finance and accounting, procurement, manufacturing, inventory management, order management, warehouse management, supply chain management, customer relationship management, professional services automation, project and file management, human resources management, e-commerce, and marketing automation. In addition, the company offers mobile application, web development, and desktop software development services. It serves small and medium-sized businesses and corporate customers. The company was founded in 2011 and is based in Cheung Sha Wan, Hong Kong. Wellchange Holdings Company Limited operates as a subsidiary of Power Smart International Limited.

About Paycom Software

Paycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution provides a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling, time-off requests, labor allocation, labor management reports/push reporting, geofencing/geotracking, and Microfence, a proprietary Bluetooth. Its HCM solution also offers payroll applications comprising better employee transaction interface, payroll and tax management, payroll card, Everyday, Paycom pay, Client Action Center, expense management, mileage tracker/fixed and variable rates, garnishment administration, and GL concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, and Paycom learning, as well as my analytics. In addition, its HCM solution provides manager on-the-go that gives supervisors and managers the ability to perform a variety of tasks, such as approving time-off requests and expense reimbursements; direct data exchange; ask here, a tool for direct line of communication to ask work-related questions; document and checklist; government and compliance; benefits administration/benefits to carrier; benefit enrollment service; COBRA administration; personnel action and performance discussion forms; surveys; 401(k) reporting; report center; and affordable care act applications, as well as Clue, which securely collects, tracks, and manages the vaccination and testing data of the workforce. Paycom Software, Inc. was founded in 1998 and is based in Oklahoma City, Oklahoma.