Intellinetics (OTCMKTS:INLX) and Paylocity (NASDAQ:PCTY) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Intellinetics -93.96% N/A -156.13%
Paylocity 12.81% 13.43% 1.96%

Valuation & Earnings

This table compares Intellinetics and Paylocity’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intellinetics $2.62 million 0.92 -$1.35 million ($0.08) -1.62
Paylocity $363.52 million 12.20 $38.59 million $0.31 270.39

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

Institutional & Insider Ownership

64.9% of Paylocity shares are owned by institutional investors. 23.6% of Intellinetics shares are owned by insiders. Comparatively, 41.2% of Paylocity shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Intellinetics and Paylocity, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intellinetics 0 1 0 0 2.00
Paylocity 0 5 9 0 2.64

Paylocity has a consensus price target of $77.71, suggesting a potential downside of 7.28%. Given Paylocity’s stronger consensus rating and higher possible upside, analysts plainly believe Paylocity is more favorable than Intellinetics.

Summary

Paylocity beats Intellinetics on 12 of the 12 factors compared between the two stocks.

Intellinetics Company Profile

Intellinetics, Inc. develops, markets, and sells document solutions software to the public and private sectors in the United States. The company's software platform allows its customers to capture and manage documents across operations, such as scanned hard-copy documents and digital documents, including Microsoft Office 365, digital images, audios, videos, and emails. It offers IntelliCloud software platform solution that includes image processing modules, records management, workflow, and extended components. The company also provides installation, integration, training, and consulting services, as well as ongoing software maintenance and customer support services; and pre-installation assessment, project scoping, and implementation consulting services. It offers its products through software installed on customer equipment, as well as provides access to its software solutions as a service through the Internet. The company was formerly known as GlobalWise Investments, Inc. and changed its name to Intellinetics, Inc. in September 2014. Intellinetics, Inc. was founded in 1996 and is headquartered in Columbus, Ohio.

Paylocity Company Profile

Paylocity Holding Corporation provides cloud-based payroll and human capital management software solutions for medium-sized organizations in the United States. The company offers Paylocity Web Pay for enterprise-grade payroll processing and administration; Paylocity Web HR for employee record management, HR compliance and reporting, HR insight and analytics, and self-service portals; Talent Management for employee performance appraisal process and performance review; Paylocity Web Time, a time and attendance solution; and Paylocity Web Expense, an expense management tool designed to streamline and automate the expense management process. It also provides Paylocity Web Benefits and Paylocity Enterprise Benefits, which are benefit management solutions that integrate with insurance carrier systems to provide automated administrative processes and allow users to choose benefit elections and make life event changes online, summarize benefit elections, and perform other benefit-related tasks, as well as enable premium reconciliation, management of voluntary benefits, and reporting. In addition, the company offers third-party administrative services for clients designed to modernize the administration of flexible spending accounts, health savings accounts, transportation management accounts, premium only plans, and health reimbursement arrangements for their employees. Further, it provides implementation and training, client, and tax and regulatory services. The company was founded in 1997 and is headquartered in Schaumburg, Illinois.

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