Reviewing Gridsum Holding Inc. (GSUM)’s and Paycom Software Inc. (NYSE:PAYC)’s results

We will be contrasting the differences between Gridsum Holding Inc. (NASDAQ:GSUM) and Paycom Software Inc. (NYSE:PAYC) as far as analyst recommendations, profitability, risk, dividends, earnings and valuation, institutional ownership are concerned. The two businesses are rivals in the Application Software industry.

Earnings and Valuation

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gridsum Holding Inc.	N/A	0.00	N/A	-1.60	0.00
Paycom Software Inc.	612.36M	19.56	143.07M	2.34	75.82

Table 1 demonstrates Gridsum Holding Inc. and Paycom Software Inc.’s top-line revenue, earnings per share and valuation.

Profitability

Table 2 provides the return on equity, net margins and return on assets of the two firms.

	Net Margins	Return on Equity	Return on Assets
Gridsum Holding Inc.	0.00%	-57.2%	-24.6%
Paycom Software Inc.	23.36%	40.3%	9.1%

Liquidity

The current Quick Ratio of Gridsum Holding Inc. is 2 while its Current Ratio is 2. Meanwhile, Paycom Software Inc. has a Current Ratio of 1 while its Quick Ratio is 1. Gridsum Holding Inc. is better positioned to pay off its short-term and long-term debts than Paycom Software Inc.

Analyst Ratings

In next table is delivered Gridsum Holding Inc. and Paycom Software Inc.’s ratings and recommendations.

	Sell Ratings	Hold Ratings	Buy Ratings	Rating Score
Gridsum Holding Inc.	0	0	0	0.00
Paycom Software Inc.	0	2	2	2.50

Paycom Software Inc. on the other hand boasts of a $186 average price target and a -10.68% potential downside.

Institutional and Insider Ownership

Roughly 40.9% of Gridsum Holding Inc. shares are owned by institutional investors while 79.7% of Paycom Software Inc. are owned by institutional investors. 5.3% are Gridsum Holding Inc.’s share owned by insiders. Competitively, 8.4% are Paycom Software Inc.’s share owned by insiders.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

	Performance (W)	Performance (M)	Performance (Q)	Performance (HY)	Performance (Y)	Performance (YTD)
Gridsum Holding Inc.	1.29%	79.09%	-6.86%	-33.22%	-61.6%	76.68%
Paycom Software Inc.	-2.16%	19.68%	36.42%	15.26%	79.65%	44.89%

For the past year Gridsum Holding Inc. was more bullish than Paycom Software Inc.

Summary

Paycom Software Inc. beats Gridsum Holding Inc. on 9 of the 11 factors.

Gridsum Holding Inc. provides data analysis software for multinational and domestic enterprises, and government agencies in China. Its proprietary distributed data architecture allows its customers to collect and analyze vast amounts of information; and Gridsum Big Data platform performs multi-dimensional correlation analysis and analyzes complex real-time events. The company offers Web Dissector to analyze customer Websites by monitoring and analyzing key performance indicators; Mobile Dissector to understand mobile app user activity; SEM Dissector for search engine marketing; SEO Dissector, a search engine optimization tool; Ad Dissector, an advertisement performance monitoring and optimization product; Contribution Dissector to evaluate the performance of advertising campaigns; Audience Dissector, an audience analysis product; Recommendation Engine, a data driven content recommendation solution. It also provides Government Web Dissector, a digital intelligence solution; Government Website Group Integrated Management Platform, an integrated management platform; Streaming Dissector, a real-time viewership analysis and operational efficiency monitor for digital online video; Video Dissector, an online video content analytics tool; TV Dissector, an analytics tool; Rating Plus, a television viewing data analytics tool; and Media Dissector, a mass, social, and user-generated content media monitoring and analytics tool. In addition, the company offers Law Dissector, a search and statistical analysis tool; Smart Push, a legal research tool; Information Dissector, an insightful analytical system; Social Listening, a could-based social listening solution; Gridsum Dashboard, a data visualization tool; and Gridsum Report Center, an automated report generation and distribution tool. Further, it develops new media analytics and information discovery solutions to address a range of customer needs. The company was founded in 2005 and is headquartered in Beijing, China.

Paycom Software, Inc. provides cloud-based human capital management (HCM) software solution that is delivered as software-as-a-service for small to mid-sized companies in the United States. It provides functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The companyÂ’s HCM solution offers a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, E-Verify, and tax credit service applications; and time and labor management, such as time and attendance, scheduling/schedule exchange, time-off requests, labor allocation, labor management reports/push reporting, and geofencing/geotracking applications. Its HCM solution also provides payroll applications comprising payroll and tax management, Paycom Pay, expense management, garnishment management, and GL Concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, executive dashboard, and Paycom learning applications. In addition, the companyÂ’s HCM solution offers HR management applications, which comprise document and task management, government and compliance, benefits administration/benefits to carrier, COBRA administration, personnel action forms, surveys, and affordable care act applications. Paycom Software, Inc. was founded in 1998 and is headquartered in Oklahoma City, Oklahoma.