Head-To-Head Survey: TaskUs (NASDAQ:TASK) and Paylocity (NASDAQ:PCTY)

TaskUs (NASDAQ:TASK) and Paylocity (NASDAQ:PCTY) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Institutional and Insider Ownership

44.6% of TaskUs shares are owned by institutional investors. Comparatively, 94.8% of Paylocity shares are owned by institutional investors. 31.9% of TaskUs shares are owned by company insiders. Comparatively, 20.1% of Paylocity shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

TaskUs has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500. Comparatively, Paylocity has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Earnings & Valuation

This table compares TaskUs and Paylocity”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TaskUs	$1.24 billion	0.67	$102.28 million	$1.10	8.26
Paylocity	$1.77 billion	5.10	$269.74 million	$5.16	33.56

Paylocity has higher revenue and earnings than TaskUs. TaskUs is trading at a lower price-to-earnings ratio than Paylocity, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TaskUs and Paylocity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TaskUs	8.22%	30.17%	11.13%
Paylocity	15.40%	27.59%	5.87%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for TaskUs and Paylocity, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TaskUs	1	4	1	0	2.00
Paylocity	0	5	12	0	2.71

TaskUs currently has a consensus target price of $9.80, indicating a potential upside of 7.81%. Paylocity has a consensus target price of $177.47, indicating a potential upside of 2.50%. Given TaskUs’ higher possible upside, equities analysts plainly believe TaskUs is more favorable than Paylocity.

Summary

Paylocity beats TaskUs on 9 of the 14 factors compared between the two stocks.

About TaskUs

TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.

About Paylocity

Paylocity Holding Corporation engages in the provision of cloud-based human capital management and payroll software solutions for workforce in the United States. The company offers payroll software solution for global payroll, expense management, tax services, on demand payment, and garnishment managed services; and time and labor management software for time and attendance, scheduling, and time collection. It also provides human resources (HR) software solutions for employee self-service, compliance, HR edge, data analytics, and workflows and documents, as well as human resource management system; talent management system for recruiting, onboarding, performance, compensation, and learning; and benefits administration software. In addition, the company offers employee experience platform for community, employee voice, recognition and rewards, video, and modern workforce index; HR reporting software; and mobile HR solutions. 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. The company was founded in 1997 and is headquartered in Schaumburg, Illinois.