Reviewing Smead Value C (NASDAQ:SVFCX) and Paylocity (NASDAQ:PCTY)

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

Profitability

This table compares Smead Value C and Paylocity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smead Value C	N/A	N/A	-17.75%
Paylocity	14.74%	22.17%	5.13%

Insider and Institutional Ownership

60.2% of Smead Value C shares are owned by institutional investors. Comparatively, 94.8% of Paylocity shares are owned by institutional investors. 10.3% of Smead Value C shares are owned by company insiders. Comparatively, 22.5% of Paylocity shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Smead Value C has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500. Comparatively, Paylocity has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Valuation & Earnings

This table compares Smead Value C and Paylocity’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smead Value C	N/A	N/A	-$6.48 million	N/A	N/A
Paylocity	$1.40 billion	6.54	$206.77 million	$3.44	47.24

Paylocity has higher revenue and earnings than Smead Value C.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Smead Value C and Paylocity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smead Value C	0	0	0	0	N/A
Paylocity	0	6	9	0	2.60

Paylocity has a consensus target price of $179.13, indicating a potential upside of 10.24%. Given Paylocity’s higher possible upside, analysts clearly believe Paylocity is more favorable than Smead Value C.

Summary

Paylocity beats Smead Value C on 10 of the 10 factors compared between the two stocks.

About Smead Value C

SVF Investment Corp. 3 does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. The company was formerly known as SVF Investment III Corp. and changed its name to SVF Investment Corp. 3 in January 2021. SVF Investment Corp. 3 was incorporated in 2020 and is based in San Carlos, California.

About Paylocity

Paylocity Holding Corporation provides cloud-based human capital management and payroll software solutions for workforce in the United States. The company offers Payroll and Tax Services solution to simplifies payroll, automates processes, and manages compliance requirements within one system; and expense management, on demand payment, and garnishment solutions. It provides human capital management and employee self-service solutions, document library, compliance dashboard, and HR edge; time and attendance solution; schedule tracking services; and time collection devices, including kiosks, time clocks, and mobile and web applications. In addition, the company offers talent management solutions comprising recruiting and onboarding, as well as learning, performance, and compensation management; and third-party administrative solutions; employee experiences solutions, including community, premium video, survey, and peer recognition; and insights and recommendations solutions, such as modern workforce index, data insights, and reporting. 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. Paylocity Holding Corporation was founded in 1997 and is headquartered in Schaumburg, Illinois.