PAYC vs. MPWR

Last updated Jun 9, 2026

PAYC (Paycom Software, Inc.) and MPWR (Monolithic Power Systems, Inc.) are both stocks. Both are in the Technology sector — PAYC in Software - Application, MPWR in Semiconductors. Over the past 10 years, PAYC returned 12.98%/yr vs 37.72%/yr for MPWR. At a 0.43 correlation, their price movements are largely independent.

Performance

PAYC vs. MPWR - Performance Comparison

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

Returns By Period

In the year-to-date period, PAYC achieves a -14.38% return, which is significantly lower than MPWR's 72.37% return. Over the past 10 years, PAYC has underperformed MPWR with an annualized return of 12.98%, while MPWR has yielded a comparatively higher 37.72% annualized return.

PAYC

• 1D: -1.40%
• 1M: -0.58%
• YTD: -14.38%
• 6M: -16.79%
• 1Y: -48.45%
• 3Y*: -23.02%
• 5Y*: -15.74%
• 10Y*: 12.98%

MPWR

• 1D: 5.28%
• 1M: -2.60%
• YTD: 72.37%
• 6M: 59.11%
• 1Y: 128.65%
• 3Y*: 47.03%
• 5Y*: 36.56%
• 10Y*: 37.72%

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

PAYC vs. MPWR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PAYC Paycom Software, Inc.	-14.38%	-21.70%	-0.04%	-33.06%	-25.26%	-8.19%	70.82%	116.22%	52.43%	76.59%
MPWR Monolithic Power Systems, Inc.	72.37%	54.45%	-5.55%	79.78%	-27.78%	35.49%	107.49%	54.80%	4.49%	38.23%

Correlation

The correlation between PAYC and MPWR is -0.11, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.11
Correlation (3Y) Calculated over the trailing 3-year period	0.19
Correlation (5Y) Calculated over the trailing 5-year period	0.40
Correlation (10Y) Calculated over the trailing 10-year period	0.45
Correlation (All Time) Calculated using the full available price history since Apr 16, 2014	0.43

The correlation between PAYC and MPWR shifts across timeframes, from -0.11 (1 year) to 0.45 (10 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap PAYC : $6.95B MPWR : $76.78B
EPS PAYC : $8.58 MPWR : $13.89
PE Ratio PAYC : 15.82 MPWR : 112.24
PEG Ratio PAYC : 0.59 MPWR : 1.41
PS Ratio PAYC : 3.55 MPWR : 25.63
PB Ratio PAYC : 8.56 MPWR : 20.88
Total Revenue (TTM) PAYC : $2.09B MPWR : $2.96B
Gross Profit (TTM) PAYC : $1.70B MPWR : $1.63B
EBITDA (TTM) PAYC : $803.80M MPWR : $861.78M

Return for Risk

PAYC vs. MPWR — Risk / Return Rank

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

PAYC

PAYC Risk / Return Rank: 5
PAYC Sharpe Ratio Rank: 1
PAYC Sortino Ratio Rank: 2
PAYC Omega Ratio Rank: 4
PAYC Calmar Ratio Rank: 8
PAYC Martin Ratio Rank: 10

MPWR

MPWR Risk / Return Rank: 92
MPWR Sharpe Ratio Rank: 94
MPWR Sortino Ratio Rank: 90
MPWR Omega Ratio Rank: 88
MPWR Calmar Ratio Rank: 94
MPWR Martin Ratio Rank: 93

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. MPWR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Paycom Software, Inc. (PAYC) and Monolithic Power Systems, Inc. (MPWR). 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.

	PAYC	MPWR	Difference
Sharpe ratio: Return per unit of total volatility	-1.29	2.70	-3.99
Sortino ratio: Return per unit of downside risk	-2.03	3.12	-5.15
Omega ratio: Gain probability vs. loss probability	0.77	1.39	-0.63
Calmar ratio: Return relative to maximum drawdown	-0.87	5.76	-6.64
Martin ratio: Return relative to average drawdown	-1.33	15.40	-16.74
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PAYC vs. MPWR - Sharpe Ratio Comparison

The current PAYC Sharpe Ratio is -1.29, which is lower than the MPWR Sharpe Ratio of 2.70. The chart below compares the historical Sharpe Ratios of PAYC and MPWR, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	PAYC	MPWR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.29	2.70	-3.99
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.36	0.69	-1.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.29	0.80	-0.51
Sharpe Ratio (All Time) Calculated using the full available price history	0.44	0.58	-0.14

Drawdowns

PAYC vs. MPWR - Drawdown Comparison

The maximum PAYC drawdown since its inception was -78.99%, which is greater than MPWR's maximum drawdown of -72.27%. Use the drawdown chart below to compare losses from any high point for PAYC and MPWR.

Drawdown Indicators

	PAYC	MPWR	Difference
Max Drawdown Largest peak-to-trough decline	-78.99%	-72.27%	-6.72%
Max Drawdown (1Y) Largest decline over 1 year	-55.76%	-22.45%	-33.31%
Max Drawdown (3Y) Largest decline over 3 years	-68.70%	-51.65%	-17.05%
Max Drawdown (5Y) Largest decline over 5 years	-78.99%	-51.65%	-27.34%
Max Drawdown (10Y) Largest decline over 10 years	-78.99%	-51.65%	-27.34%
Current Drawdown Current decline from peak	-74.84%	-7.73%	-67.11%
Average Drawdown Average peak-to-trough decline	-26.92%	-17.72%	-9.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	37.80%	8.38%	+29.42%

Volatility

PAYC vs. MPWR - Volatility Comparison

The current volatility for Paycom Software, Inc. (PAYC) is 11.88%, while Monolithic Power Systems, Inc. (MPWR) has a volatility of 19.38%. This indicates that PAYC experiences smaller price fluctuations and is considered to be less risky than MPWR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PAYC	MPWR	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.88%	19.38%	-7.50%
Volatility (6M) Calculated over the trailing 6-month period	29.90%	36.53%	-6.63%
Volatility (1Y) Calculated over the trailing 1-year period	37.81%	47.99%	-10.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	44.49%	53.40%	-8.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	44.50%	47.17%	-2.67%

Dividends

PAYC vs. MPWR - Dividend Comparison

PAYC's dividend yield for the trailing twelve months is around 1.11%, more than MPWR's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MPWR Monolithic Power Systems, Inc.	0.43%	0.69%	0.85%	0.63%	0.85%	0.49%	0.55%	0.90%	1.03%	0.71%	0.98%	1.26%
PAYC Paycom Software, Inc.	1.11%	0.94%	0.73%	0.54%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Financials

PAYC vs. MPWR - Profitability Comparison

The chart below illustrates the profitability comparison between Paycom Software, Inc. and Monolithic Power Systems, 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%.

MPWR - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Monolithic Power Systems, Inc. reported a gross profit of 445.07M and revenue of 804.19M. Therefore, the gross margin over that period was 55.3%.

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%.

MPWR - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Monolithic Power Systems, Inc. reported an operating income of 241.15M and revenue of 804.19M, resulting in an operating margin of 30.0%.

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%.

MPWR - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Monolithic Power Systems, Inc. reported a net income of 193.23M and revenue of 804.19M, resulting in a net margin of 24.0%.

Frequently Asked Questions

Can I hold both PAYC and MPWR in my portfolio?

PAYC and MPWR have a correlation of -0.11, 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 MPWR?

MPWR has higher volatility (19.38%) compared to PAYC (11.88%). In terms of maximum drawdown, PAYC dropped -78.99% vs MPWR's -72.27%.

Which has better risk-adjusted returns?

MPWR currently has the higher Sharpe Ratio (2.70 vs -1.29), 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.