Paychex (NASDAQ:PAYX) versus OFA Group (NASDAQ:OFAL) Head-To-Head Comparison

Paychex (NASDAQ:PAYX) and OFA Group (NASDAQ:OFAL) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paychex	27.35%	52.78%	12.29%
OFA Group	N/A	N/A	N/A

Volatility and Risk

Paychex has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, OFA Group has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Paychex and OFA Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paychex	2	13	1	1	2.06
OFA Group	1	0	0	0	1.00

Paychex presently has a consensus price target of $115.93, suggesting a potential upside of 0.65%. Given Paychex’s stronger consensus rating and higher probable upside, research analysts plainly believe Paychex is more favorable than OFA Group.

Institutional & Insider Ownership

83.5% of Paychex shares are held by institutional investors. 0.6% of Paychex shares are held by company insiders. Comparatively, 55.3% of OFA Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Paychex and OFA Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paychex	$6.51 billion	6.30	$1.76 billion	$5.04	22.85
OFA Group	$720,000.00	8.46	-$8.02 million	($0.72)	-3.56

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

Summary

Paychex beats OFA Group on 12 of the 15 factors compared between the two stocks.

About Paychex

Paychex, Inc. provides payroll, human resources and employee benefits solutions to businesses of varying sizes. Its services include payroll processing, tax administration, time and attendance tools, HR support, employee benefits, retirement services and business insurance. The company also offers professional employer organization services, which let businesses outsource certain employment responsibilities, as well as technology for workforce management, recruiting and compliance. Paychex primarily serves employers in the United States and supports businesses with international workforce needs.

About OFA Group

Through our wholly owned operating subsidiary, Office for Fine Architecture Limited, we provide comprehensive architectural services, including design and fit out services for commercial and residential buildings. The design service includes both the consultation with our staff and the actual design work and the Company provides a specific conceptualized design with layout plans, detailed design drawings, advice relating to, among other things, budgetary consideration, optimal use of space, the materials, fittings, furniture, appliances and other items to be used with an aim to produce a preliminary design plan and quotation for clients’ considerations.