Paylocity (NASDAQ:PCTY) and Cloopen Group (NYSE:RAAS) Head-To-Head Comparison

Cloopen Group (NYSE:RAAS) and Paylocity (NASDAQ:PCTY) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cloopen Group	N/A	N/A	N/A
Paylocity	13.75%	22.07%	5.46%

Analyst Recommendations

This is a summary of current ratings and target prices for Cloopen Group and Paylocity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cloopen Group	0	0	0	0	0.00
Paylocity	0	6	14	1	2.76

Paylocity has a consensus target price of $207.83, suggesting a potential upside of 39.50%. Given Paylocity’s stronger consensus rating and higher probable upside, analysts clearly believe Paylocity is more favorable than Cloopen Group.

Valuation & Earnings

This table compares Cloopen 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
Cloopen Group	$78.58 million	N/A	-$19.56 million	N/A	N/A
Paylocity	$1.60 billion	5.08	$227.13 million	$3.99	37.34

Paylocity has higher revenue and earnings than Cloopen Group.

Institutional & Insider Ownership

94.8% of Paylocity shares are owned by institutional investors. 9.8% of Cloopen Group shares are owned by company insiders. Comparatively, 19.4% of Paylocity shares are owned 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.

Summary

Paylocity beats Cloopen Group on 11 of the 11 factors compared between the two stocks.

About Cloopen Group

Cloopen Group Holding Limited, through its subsidiaries, provides cloud communication services in the People's Republic of China. It offers River Soldier CRM, an intelligent marketing system and digital operation management platform; AI vision technology; Ladder AI Kernal, a natural language processing technology; Smart IVR, an intelligent navigation robot; Rongxi assistive robot technology; and Rongxi sparring robot that helps enterprises solve problems. The company also provides sky counter that offers remote audio and video services for enterprise customers; instant messaging and enterprise work center services; SMS verification, international SMS, and SMS sending platform services; and international voice, voice notification, two-way calling, and voice verification code services. It serves a customer base consisting of enterprises of various industries, including enterprise general, insurance, government, car, manufacture, and port. The company was founded in 2012 and is headquartered in Beijing, China.

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.