Critical Survey: Intapp (NASDAQ:INTA) and Paylocity (NASDAQ:PCTY)

Paylocity (NASDAQ:PCTY) and Intapp (NASDAQ:INTA) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Insider and Institutional Ownership

94.8% of Paylocity shares are owned by institutional investors. Comparatively, 90.0% of Intapp shares are owned by institutional investors. 21.9% of Paylocity shares are owned by insiders. Comparatively, 13.0% of Intapp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paylocity	14.24%	22.08%	5.52%
Intapp	-3.61%	-0.89%	-0.52%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paylocity	$1.60 billion	5.30	$227.13 million	$4.01	38.21
Intapp	$504.12 million	6.39	-$18.22 million	($0.24)	-163.33

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

Risk and Volatility

Paylocity has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Intapp has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Paylocity and Intapp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paylocity	0	7	13	1	2.71
Intapp	2	3	4	0	2.22

Paylocity currently has a consensus target price of $221.59, indicating a potential upside of 44.61%. Intapp has a consensus target price of $60.63, indicating a potential upside of 54.66%. Given Intapp’s higher probable upside, analysts clearly believe Intapp is more favorable than Paylocity.

Summary

Paylocity beats Intapp on 12 of the 15 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 Intapp

Intapp, Inc., through its subsidiary, Integration Appliance, Inc., provides industry-specific cloud-based software solutions for the professional and financial services industry in the United States, the United Kingdom, and internationally. Its solutions include DealCloud, a deal and relationship management solution that manages financial services firms' market relationships, prospective clients and investments, current engagements and deal processes, and operations and compliance activities; collaboration and content solutions, including Intapp documents, an engagement-centric document management system, and Intapp workspaces; risk and compliance management solutions, such as Intapp conflicts, Intapp intake, Intapp terms, Intapp walls, and Intapp employee compliance; and operational and financial management solutions comprising Intapp Billstream, a cloud-based automated proforma invoice solution, Intapp time, and Intapp terms. The company's solutions enable private capital, investment banking, legal, accounting, and consulting firms to realize the benefits of modern AI and cloud-based architectures for their critical business functions without compromising industry-specific functionality or regulatory compliance. It also offers strategic advisory, operational transformation, technology and digital strategy, data strategy, risk management, change management, program management, and M&A preparation; implementation services; managed services; and technical support services, as well as collaboration and integration solutions. The company sells its software on a subscription basis through a direct enterprise sales model. The company was formerly known as LegalApp Holdings, Inc. and changed its name to Intapp, Inc. in February 2021. Intapp, Inc. was founded in 2000 and is headquartered in Palo Alto, California.