Reviewing Liquid Holdings Group (OTCMKTS:LIQDQ) & Paychex (NASDAQ:PAYX)

Paychex (NASDAQ:PAYX) and Liquid Holdings Group (OTCMKTS:LIQDQ) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.

Insider & Institutional Ownership

83.5% of Paychex shares are held by institutional investors. 0.8% of Paychex shares are held by company insiders. Comparatively, 32.0% of Liquid Holdings Group shares are held by company 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.

Analyst Ratings

This is a summary of recent ratings and price targets for Paychex and Liquid Holdings Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paychex	4	10	2	1	2.00
Liquid Holdings Group	0	0	0	0	0.00

Paychex currently has a consensus target price of $105.80, suggesting a potential downside of 3.43%. Given Liquid Holdings Group’s higher possible upside, analysts clearly believe Liquid Holdings Group is more favorable than Paychex.

Valuation and Earnings

This table compares Paychex and Liquid Holdings Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paychex	$6.51 billion	6.03	$1.76 billion	$4.89	22.40
Liquid Holdings Group	N/A	N/A	N/A	N/A	N/A

Paychex has higher revenue and earnings than Liquid Holdings Group.

Profitability

This table compares Paychex and Liquid Holdings Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paychex	27.03%	50.90%	11.87%
Liquid Holdings Group	N/A	N/A	N/A

Summary

Paychex beats Liquid Holdings Group on 8 of the 10 factors compared between the two stocks.

About Paychex

Paychex, Inc., together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing. The company also provides HR solutions, including integrated HCM technology solutions and HR advisory services through both virtual and on-site availability of a professionally trained HR representative, as well as HR support to non-payroll clients through its HR Partner Plus solution; and retirement services administration, such as plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services. In addition, it offers cloud-based HR administration software products for employee benefits management and administration, time and attendance, digital communication solutions, recruiting, and onboarding solutions; plan administration outsourcing and state unemployment insurance services; various business services to small to medium-sized businesses comprising payroll funding and outsourcing services, which include payroll processing, invoicing, and tax preparation; and payment processing services, financial fitness programs, and a small-business loan resource center. Further, the company provides insurance services for property and casualty coverage, such as workers’ compensation, business-owner policies, cyber security protection, and commercial auto, as well as health and benefits coverage, including health, dental, vision, and life. It markets and sells its services primarily through its direct sales force. The company was founded in 1971 and is headquartered in Rochester, New York.

About Liquid Holdings Group

Liquid Holdings Group, Inc. is in the process of liquidation of its assets. Previously, it was engaged in the provision of cloud-based trading and portfolio management solutions. The company was founded in 2012 and is based in Hoboken, New Jersey.