Critical Survey: Paycor HCM (NASDAQ:PYCR) vs. CXApp (NASDAQ:CXAI)

CXApp (NASDAQ:CXAI) and Paycor HCM (NASDAQ:PYCR) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Analyst Recommendations

This is a summary of current recommendations for CXApp and Paycor HCM, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CXApp	0	0	0	0	0.00
Paycor HCM	1	13	4	0	2.17

Paycor HCM has a consensus price target of $21.81, indicating a potential downside of 1.79%. Given Paycor HCM’s stronger consensus rating and higher possible upside, analysts clearly believe Paycor HCM is more favorable than CXApp.

Valuation and Earnings

This table compares CXApp and Paycor HCM”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CXApp	$7.37 million	3.57	-$53.62 million	N/A	N/A
Paycor HCM	$678.84 million	5.88	-$58.94 million	($0.26)	-85.42

CXApp has higher earnings, but lower revenue than Paycor HCM.

Risk and Volatility

CXApp has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Paycor HCM has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Institutional and Insider Ownership

14.4% of CXApp shares are held by institutional investors. Comparatively, 36.8% of Paycor HCM shares are held by institutional investors. 16.2% of CXApp shares are held by insiders. Comparatively, 1.4% of Paycor HCM shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares CXApp and Paycor HCM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CXApp	-751.90%	-281.11%	-158.66%
Paycor HCM	-6.72%	3.41%	1.63%

Summary

Paycor HCM beats CXApp on 9 of the 12 factors compared between the two stocks.

About CXApp

CXApp Inc. provides a workplace experience platform for enterprise customers. It offers CXApp, a software-as-a-service platform with native mapping, analytics, on-device positioning, and applications technologies for use in various applications, such as workplace experience, employee engagement, desk and meeting room reservations, workplace analytics, occupancy management, content delivery, corporate communications and notifications, event management, live indoor mapping, wayfinding, and navigation. The company was formerly known as KINS Technology Group Inc. and changed its name to CXApp Inc. in March 2023. The company is based in Palo Alto, California.

About Paycor HCM

Paycor HCM, Inc., together with its subsidiaries, provides software-as-a-service (SaaS) human capital management (HCM) solutions for small and medium-sized businesses (SMBs) primarily in the United States. It offers cloud-native platform to address the comprehensive people management needs of SMB leaders. The company's SaaS based people management products include Cor HCM, a complete suite of HCM tools spanning HR, onboarding, payroll, compensation management, employee surveys, expenses, and reporting and analytics; Workforce Management, a solution with flexible time entry, overtime calculations, and scheduling capabilities with real-time payroll synchronization; Benefits Administration, a decision support solution to help leaders to streamline and optimize company's benefits administration; and Talent Management, an integrated compensation and performance management solution. It serves manufacturing, healthcare, restaurant, retail, professional services, nonprofit, and education industries through its direct sales teams. Paycor HCM, Inc. was founded in 1990 and is headquartered in Cincinnati, Ohio.