Financial Contrast: Validian (OTCMKTS:VLDI) & Paycom Software (NYSE:PAYC)

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

Institutional & Insider Ownership

87.8% of Paycom Software shares are held by institutional investors. 14.5% of Paycom Software shares are held by company insiders. Comparatively, 28.3% of Validian shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Paycom Software and Validian”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paycom Software	$1.82 billion	6.95	$340.79 million	$8.31	26.46
Validian	N/A	N/A	N/A	N/A	N/A

Paycom Software has higher revenue and earnings than Validian.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paycom Software	25.78%	32.90%	11.07%
Validian	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and target prices for Paycom Software and Validian, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paycom Software	0	11	1	0	2.08
Validian	0	0	0	0	0.00

Paycom Software presently has a consensus target price of $193.67, suggesting a potential downside of 11.92%. Given Paycom Software’s stronger consensus rating and higher probable upside, analysts plainly believe Paycom Software is more favorable than Validian.

Summary

Paycom Software beats Validian on 8 of the 9 factors compared between the two stocks.

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.

About Validian

Validian Corporation, a development stage company, provides software products to assist public and private enterprises in Canada and internationally. The company primarily offers ValidianProtect, a software only cyber security technology comprising an application and data protection platform and a data protection module, which protect the life cycle of data by providing secure access, retrieval, transfer, receipt, storage, and usage of digital information on mobile, cloud, Web, local and network applications, devices, servers, databases, and memory at rest, as well as in transit and in usage using wired, and wireless and mobile networks. Its ValidianProtect also provides secure mobile messaging and communications, cloud computing, cloud storage, distributed computing and Web application and Web portal access and usage, software defined networking, and the Internet of Things and SCADA for computers, servers, databases, intelligent sensors, and tablets and smartphones. In addition, the company offers solutions customized to the client's business process to ensure authenticity, integrity, and custody of digital assets. It offers its products through direct sales, as well as through channel partners, such as independent software vendors, application service providers, value-added resellers, independent marketing representatives, system integrators, and original equipment manufacturers. The company was formerly known as Sochrys.com Inc. and changed its name to Validian Corporation in January 2003. Validian Corporation was incorporated in 1989 and is based in Ottawa, Canada.