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Paycom Software, Inc. (PAYC) vs Visa Inc. (V): Which Is the Better Buy in 2026?

As of 2026-06-19, PAYC is undervalued at $125, with a DCF intrinsic value of $265 and a margin of safety of 53%. V is fairly valued at $327, with an intrinsic value of $304 and a margin of safety of -8%. Of the two, PAYC has the wider margin of safety.

PAYC
Paycom Software, Inc.
$124.85
VS
V
Visa Inc.
$327.24

Rewards

PAYC
  • ★Paycom Software, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 87.6% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Paycom Software, Inc. scores 87/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
V
  • ★Visa Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 97.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Visa Inc. scores 99/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.

Risks

PAYC
  • ⚠FCF yield of 6.9% suggests reasonable valuation assuming continued moderate growth.
V
  • ⚠Insiders have sold $14.2M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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PAYC
V
Valuation
$403.50M
Free Cash Flow
$20.84B
6.93%
FCF Yield
3.35%
14.45
Trailing P/E
28.55
10.15
Forward P/E
22.02
Quality & Moat
38.58%
ROIC
38.39%
37.15%
ROE
60.35%
87.60%
Gross Margin
97.78%
0.93
PEG Ratio
1.46
Balance Sheet Safety
0.75
Net Debt / Equity
0.28
N/A
Interest Coverage
N/A
0.91
Net Debt / EBITDA
0.33
1.16%
Dividend Yield
0.80%
PAYC: 5Ties: 2V: 5
PAYCV

Historical Fundamentals

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PAYC

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

V

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$1 Retained Earnings Test

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PAYC
$-8.69
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$1.06B
Δ Market Cap
$-9.22B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
V
$5.50
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$44.47B
Δ Market Cap
+$244.54B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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PAYC
52.9% Margin of Safety
Price is 52.9% below estimated fair value
Current Price: $124.85
Fair Value: $264.88
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
V
7.6% Overvalued
Price is 7.6% above estimated fair value
Current Price: $327.24
Fair Value: $304.21
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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PAYC

What growth rate is the market pricing in at $125?

+3.0%
Market-Implied Owner Earnings Growth
Standard FCF implies +4.6%

The market implies +3.0% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +4.6%, reflecting heavy growth investment expected to generate future returns.

V

What growth rate is the market pricing in at $327?

+13.9%
Market-Implied Owner Earnings Growth
Standard FCF implies +13.4%

The market implies +13.9% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +13.4%, reflecting heavy growth investment.

Economic Moat Score

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PAYC
87/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
V
99/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

Forensic Accounting

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PAYC
-2.54
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
V
-2.50
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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PAYC
Insiders 13.8%Institutions 101.3%
No. of Institutional Holders850
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
V
Insiders 0.1%Institutions 91.7%Retail & Other 8.2%
No. of Institutional Holders5,856
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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PAYC
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
V
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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PAYC
1
Sells (3M)
3
Sells (12M)
Total value (12M): $926,249
PECK RANDALL
Chief Operating Officer
$351,250
@ $140.50 · 2026-05-18
FOSTER ROBERT D
Chief Financial Officer
$211,458
@ $162.66 · 2025-12-10
PECK RANDALL
Chief Operating Officer
$363,541
@ $165.85 · 2025-12-05
PECK RANDALL
Chief Operating Officer
$234,261
@ $263.21 · 2025-06-04
WATTS JULIUS C JR.
Director
$109,108
@ $218.22 · 2025-02-24
PECK RANDALL
Chief Operating Officer
$763,866
@ $212.19 · 2025-02-21
PETERS FREDERICK C II
Director
$315,855
@ $210.57 · 2025-02-18
RICHISON CHAD R
Chief Executive Officer
$414,154
@ $212.39 · 2024-10-31
BOELTE CRAIG E
Chief Financial Officer
$1.85M
@ $155.98 · 2024-08-12
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
V
2
Sells (3M)
17
Sells (12M)
Total value (12M): $53.88M
SUH CHRIS
Chief Financial Officer
$3.46M
@ $324.81 · 2026-05-12
MCINERNEY RYAN
Chief Executive Officer
$10.70M
@ $340.14 · 2026-04-29
CARNEY LLOYD A
Director
$201,253
@ $309.62 · 2026-03-11
MCINERNEY RYAN
Chief Executive Officer
$3.66M
@ $349.18 · 2026-01-02
ROTTENBERG JULIE B
General Counsel
$699,315
@ $345.00 · 2025-12-11
MCINERNEY RYAN
Chief Executive Officer
$3.57M
@ $340.07 · 2025-12-11
TANEJA RAJAT
Officer
$7.84M
@ $330.14 · 2025-12-02
FABARA PAUL D
Officer
$2.50M
@ $331.45 · 2025-12-02
TANEJA RAJAT
Officer
$2.08M
@ $330.00 · 2025-11-21
FABARA PAUL D
Officer
$707,917
@ $325.93 · 2025-11-21
CARNEY LLOYD A
Director
$302,832
@ $336.48 · 2025-11-04
MCINERNEY RYAN
Chief Executive Officer
$3.58M
@ $341.00 · 2025-11-03
MCINERNEY RYAN
Chief Executive Officer
$3.59M
@ $342.30 · 2025-10-01
MCINERNEY RYAN
Chief Executive Officer
$3.65M
@ $348.57 · 2025-09-02
ROTTENBERG JULIE B
General Counsel
$697,329
@ $344.02 · 2025-08-18
MCINERNEY RYAN
Chief Executive Officer
$3.60M
@ $343.13 · 2025-08-14
MCINERNEY RYAN
Chief Executive Officer
$3.05M
@ $353.82 · 2025-07-01
FABARA PAUL D
Officer
$4.36M
@ $375.00 · 2025-06-11
TANEJA RAJAT
President
$18.44M
@ $368.87 · 2025-06-05
FABARA PAUL D
Officer
$17.10M
@ $370.00 · 2025-06-05
MCINERNEY RYAN
Chief Executive Officer
$3.13M
@ $362.77 · 2025-06-02
FABARA PAUL D
Officer
$6.32M
@ $357.45 · 2025-05-12
FABARA PAUL D
Officer
$5.26M
@ $355.04 · 2025-05-08
ROTTENBERG JULIE B
General Counsel
$889,868
@ $345.58 · 2025-05-01
MCINERNEY RYAN
Chief Executive Officer
$2.98M
@ $345.58 · 2025-05-01
MCINERNEY RYAN
Chief Executive Officer
$3.02M
@ $350.44 · 2025-04-01
FABARA PAUL D
Officer
$13.40M
@ $340.41 · 2025-03-19
FABARA PAUL D
Officer
$12.88M
@ $327.20 · 2025-03-14
MCINERNEY RYAN
Chief Executive Officer
$3.13M
@ $363.00 · 2025-03-03
ANDRESKI PETER M
Officer
$815,314
@ $349.62 · 2025-02-07
MAHON TULLIER KELLY
Officer
$11.80M
@ $349.77 · 2025-02-07
ROTTENBERG JULIE B
General Counsel
$874,480
@ $340.00 · 2025-02-03
MCINERNEY RYAN
Chief Executive Officer
$2.93M
@ $340.00 · 2025-02-03
MCINERNEY RYAN
Chief Executive Officer
$2.74M
@ $317.78 · 2025-01-02
TANEJA RAJAT
Officer
$11.15M
@ $315.55 · 2024-12-13
MCINERNEY RYAN
Chief Executive Officer
$2.73M
@ $316.90 · 2024-12-02
FABARA PAUL D
Officer
$668,603
@ $307.97 · 2024-11-22
ROTTENBERG JULIE B
General Counsel
$741,996
@ $288.49 · 2024-11-01
MCINERNEY RYAN
Chief Executive Officer
$2.49M
@ $288.49 · 2024-11-01
MCINERNEY RYAN
Chief Executive Officer
$2.39M
@ $276.97 · 2024-10-01
MCINERNEY RYAN
Chief Executive Officer
$2.38M
@ $276.37 · 2024-09-03
ROTTENBERG JULIE B
General Counsel
$707,300
@ $275.00 · 2024-08-29
MCINERNEY RYAN
Chief Executive Officer
$2.37M
@ $275.00 · 2024-08-29
MAHON TULLIER KELLY
Officer
$10.12M
@ $267.64 · 2024-08-16
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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PAYC
FearGreed
😨Fear(21/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
V
FearGreed
😐Neutral(57/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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PAYC
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Fear (21)
V
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (57)
View PAYC Full AnalysisView V Full Analysis

Frequently Asked Questions: PAYC vs V

Is Paycom Software, Inc. or Visa Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, PAYC trades at a 52.9% margin of safety (intrinsic value $265 vs. price $125), compared to V's -7.6% margin of safety (intrinsic $304 vs. $327).

Which stock has a wider economic moat, Paycom Software, Inc. or Visa Inc.?▼

V scores 99/100 (Wide moat), while PAYC scores 87/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Paycom Software, Inc. in financial distress?▼

PAYC's Altman Z-Score of 1.9 places it in the Grey zone, signaling elevated bankruptcy risk. V scores 8.1 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which company has better free cash flow, Paycom Software, Inc. or Visa Inc.?▼

Paycom Software, Inc. (PAYC) generates a 6.9% free cash flow yield, compared to Visa Inc.'s 3.3%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

Which stock has higher return on invested capital, Paycom Software, Inc. or Visa Inc.?▼

PAYC earns 38.6% ROIC versus V's 38.4%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Paycom Software, Inc.'s or Visa Inc.'s?▼

V's dividend earns a safety score of 94/100 (Very Safe), compared to PAYC's 91/100 (Very Safe). V has raised its dividend for 3 consecutive years.

PAYC vs V: Which Is the Better Buy in 2026? | SafetyMargin.io