Infinite Group (OTCMKTS:IMCI) vs. Paycom Software (NYSE:PAYC) Critical Survey

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Paycom Software and Infinite Group, as reported by MarketBeat.

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

Paycom Software currently has a consensus price target of $212.80, suggesting a potential downside of 1.42%. Given Paycom Software’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Paycom Software is more favorable than Infinite Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paycom Software	26.66%	33.53%	10.76%
Infinite Group	N/A	N/A	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paycom Software	$1.88 billion	6.56	$502.00 million	$8.90	24.25
Infinite Group	$7.00 million	0.00	-$3.56 million	N/A	N/A

Paycom Software has higher revenue and earnings than Infinite Group.

Risk and Volatility

Paycom Software has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Infinite Group has a beta of -0.1, meaning that its share price is 110% less volatile than the S&P 500.

Institutional & Insider Ownership

87.8% of Paycom Software shares are held by institutional investors. 14.5% of Paycom Software shares are held by insiders. Comparatively, 35.0% of Infinite Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Paycom Software beats Infinite Group on 11 of the 12 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 Infinite Group

Infinite Group, Inc. develops cybersecurity software in the United States. The company offers Nodeware, a patented software-as-a-service solution that automates network asset identification, and cybersecurity vulnerability management and monitoring; and distributes Webroot, a cloud-based endpoint security platform solution. It also provides cybersecurity consulting services that include incident response, security awareness training, risk management, IT governance and compliance, security assessment, and penetration testing offerings to channel partners and direct customers for various vertical markets, such as banking, manufacturing, supply chain, and technology. In addition, the company offers managed support services related to information security, including troubleshooting, backend analysis, and technical and security support for mission critical technical infrastructure; and sells third party software licenses. The company was formerly known as Infinite Machines Corp. and changed its name to Infinite Group, Inc. in January 1998. Infinite Group, Inc. was incorporated in 1986 and is headquartered in Pittsford, New York.