Head to Head Analysis: Match Group (NASDAQ:MTCH) and Paylocity (NASDAQ:PCTY)

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

Institutional & Insider Ownership

94.1% of Match Group shares are held by institutional investors. Comparatively, 94.8% of Paylocity shares are held by institutional investors. 0.6% of Match Group shares are held by company insiders. Comparatively, 19.4% of Paylocity shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Match Group and Paylocity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Match Group	0	9	6	0	2.40
Paylocity	1	3	14	1	2.79

Match Group presently has a consensus target price of $41.07, indicating a potential upside of 14.72%. Paylocity has a consensus target price of $160.28, indicating a potential upside of 41.81%. Given Paylocity’s stronger consensus rating and higher possible upside, analysts clearly believe Paylocity is more favorable than Match Group.

Valuation & Earnings

This table compares Match Group and Paylocity”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Match Group	$3.49 billion	2.39	$613.45 million	$2.62	13.66
Paylocity	$1.60 billion	3.79	$227.13 million	$4.69	24.10

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

Risk & Volatility

Match Group has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Paylocity has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Match Group	18.83%	-307.45%	16.48%
Paylocity	14.94%	25.63%	5.62%

Summary

Paylocity beats Match Group on 10 of the 15 factors compared between the two stocks.

About Match Group

Match Group, Inc. engages in the provision of dating products. Its portfolio of brands includes Tinder, Hinge, Match, Meetic, OkCupid, Pairs, Plenty Of Fish, Azar, BLK, and Hakuna, as well as a various other brands, each built to increase users' likelihood of connecting with others. Its services are available in over 40 languages to users worldwide. The company was incorporated in 1986 and is based in Dallas, Texas.

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.