PAYC vs. ANET

Last updated Jun 13, 2026

PAYC (Paycom Software, Inc.) and ANET (Arista Networks, Inc.) are both stocks. Both are in the Technology sector — PAYC in Software - Application, ANET in Computer Hardware. Over the past 10 years, PAYC returned 12.79%/yr vs 43.12%/yr for ANET. At a 0.39 correlation, their price movements are largely independent.

Performance

PAYC vs. ANET - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Paycom Software, Inc. (PAYC) and Arista Networks, Inc. (ANET). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PAYC achieves a -15.13% return, which is significantly lower than ANET's 24.58% return. Over the past 10 years, PAYC has underperformed ANET with an annualized return of 12.79%, while ANET has yielded a comparatively higher 43.12% annualized return.

PAYC

• 1D: 1.72%
• 1M: -0.01%
• YTD: -15.13%
• 6M: -18.82%
• 1Y: -45.87%
• 3Y*: -24.70%
• 5Y*: -16.50%
• 10Y*: 12.79%

ANET

• 1D: 4.37%
• 1M: 16.03%
• YTD: 24.58%
• 6M: 30.84%
• 1Y: 70.45%
• 3Y*: 57.04%
• 5Y*: 48.31%
• 10Y*: 43.12%

*Multi-year figures are annualized to reflect compound growth (CAGR)

PAYC vs. ANET - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PAYC Paycom Software, Inc.	-15.13%	-21.70%	-0.04%	-33.06%	-25.26%	-8.19%	70.82%	116.22%	52.43%	76.59%
ANET Arista Networks, Inc.	24.58%	18.55%	87.73%	94.07%	-15.58%	97.89%	42.86%	-3.46%	-10.56%	143.44%

Correlation

The correlation between PAYC and ANET is -0.01, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.01
Correlation (3Y) Calculated over the trailing 3-year period	0.15
Correlation (5Y) Calculated over the trailing 5-year period	0.35
Correlation (10Y) Calculated over the trailing 10-year period	0.42
Correlation (All Time) Calculated using the full available price history since Jun 6, 2014	0.39

The correlation between PAYC and ANET shifts across timeframes, from -0.01 (1 year) to 0.42 (10 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap PAYC : $6.89B ANET : $207.94B
EPS PAYC : $8.58 ANET : $2.92
PE Ratio PAYC : 15.68 ANET : 55.91
PEG Ratio PAYC : 0.59 ANET : 1.31
PS Ratio PAYC : 3.52 ANET : 21.42
PB Ratio PAYC : 8.49 ANET : 15.42
Total Revenue (TTM) PAYC : $2.09B ANET : $9.71B
Gross Profit (TTM) PAYC : $1.70B ANET : $6.17B
EBITDA (TTM) PAYC : $803.80M ANET : $4.21B

Return for Risk

PAYC vs. ANET — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

PAYC

PAYC Risk / Return Rank: 6
PAYC Sharpe Ratio Rank: 2
PAYC Sortino Ratio Rank: 3
PAYC Omega Ratio Rank: 5
PAYC Calmar Ratio Rank: 9
PAYC Martin Ratio Rank: 11

ANET

ANET Risk / Return Rank: 78
ANET Sharpe Ratio Rank: 80
ANET Sortino Ratio Rank: 75
ANET Omega Ratio Rank: 74
ANET Calmar Ratio Rank: 80
ANET Martin Ratio Rank: 78

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

PAYC vs. ANET - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Paycom Software, Inc. (PAYC) and Arista Networks, Inc. (ANET). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	PAYC	ANET	Difference
Sharpe ratio: Return per unit of total volatility	-1.22	1.32	-2.54
Sortino ratio: Return per unit of downside risk	-1.86	1.90	-3.76
Omega ratio: Gain probability vs. loss probability	0.78	1.24	-0.46
Calmar ratio: Return relative to maximum drawdown	-0.86	2.50	-3.36
Martin ratio: Return relative to average drawdown	-1.34	5.20	-6.54

PAYC vs. ANET - Sharpe Ratio Comparison

The current PAYC Sharpe Ratio is -1.22, which is lower than the ANET Sharpe Ratio of 1.32. The chart below compares the historical Sharpe Ratios of PAYC and ANET, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

PAYC vs. ANET - Drawdown Comparison

The maximum PAYC drawdown since its inception was -78.99%, which is greater than ANET's maximum drawdown of -52.20%. Use the drawdown chart below to compare losses from any high point for PAYC and ANET.

Drawdown Indicators

	PAYC	ANET	Difference
Max Drawdown Largest peak-to-trough decline	-78.99%	-52.20%	-26.79%
Max Drawdown (1Y) Largest decline over 1 year	-53.59%	-28.33%	-25.26%
Max Drawdown (3Y) Largest decline over 3 years	-68.70%	-50.42%	-18.28%
Max Drawdown (5Y) Largest decline over 5 years	-78.99%	-50.42%	-28.57%
Max Drawdown (10Y) Largest decline over 10 years	-78.99%	-52.20%	-26.79%
Current Drawdown Current decline from peak	-75.06%	-8.15%	-66.91%
Average Drawdown Average peak-to-trough decline	-27.21%	-15.39%	-11.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	35.24%	13.60%	+21.64%

Volatility

PAYC vs. ANET - Volatility Comparison

The current volatility for Paycom Software, Inc. (PAYC) is 12.21%, while Arista Networks, Inc. (ANET) has a volatility of 16.62%. This indicates that PAYC experiences smaller price fluctuations and is considered to be less risky than ANET based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PAYC	ANET	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.21%	16.62%	-4.41%
Volatility (6M) Calculated over the trailing 6-month period	30.11%	40.79%	-10.68%
Volatility (1Y) Calculated over the trailing 1-year period	37.80%	53.57%	-15.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	44.48%	47.23%	-2.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	44.50%	45.00%	-0.50%

Dividends

PAYC vs. ANET - Dividend Comparison

PAYC's dividend yield for the trailing twelve months is around 1.12%, while ANET has not paid dividends to shareholders.

Position	TTM	2025	2024	2023
ANET Arista Networks, Inc.	0.00%	0.00%	0.00%	0.00%
PAYC Paycom Software, Inc.	1.12%	0.94%	0.73%	0.54%

Financials

PAYC vs. ANET - Profitability Comparison

The chart below illustrates the profitability comparison between Paycom Software, Inc. and Arista Networks, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

PAYC - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Paycom Software, Inc. reported a gross profit of 484.60M and revenue of 571.90M. Therefore, the gross margin over that period was 84.7%.

ANET - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Arista Networks, Inc. reported a gross profit of 1.68B and revenue of 2.71B. Therefore, the gross margin over that period was 61.9%.

PAYC - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Paycom Software, Inc. reported an operating income of 210.20M and revenue of 571.90M, resulting in an operating margin of 36.8%.

ANET - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Arista Networks, Inc. reported an operating income of 1.16B and revenue of 2.71B, resulting in an operating margin of 42.7%.

PAYC - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Paycom Software, Inc. reported a net income of 155.70M and revenue of 571.90M, resulting in a net margin of 27.2%.

ANET - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Arista Networks, Inc. reported a net income of 1.02B and revenue of 2.71B, resulting in a net margin of 37.8%.

Frequently Asked Questions

Can I hold both PAYC and ANET in my portfolio?

PAYC and ANET have a correlation of -0.01, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PAYC or ANET?

ANET has higher volatility (16.62%) compared to PAYC (12.21%). In terms of maximum drawdown, PAYC dropped -78.99% vs ANET's -52.20%.

Which has better risk-adjusted returns?

ANET currently has the higher Sharpe Ratio (1.32 vs -1.22), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.