Paychex vs Upwork
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KIRA’s take AI analyst
I put Paychex and Upwork side by side, using each one’s latest annual report. Here is what stands out:
- Paychex is the larger business, with $6.5B of revenue in fiscal 2026 against $788M for Upwork, about 8.3 times as much.
- Paychex grew revenue faster (16.9%, against 2.4%).
- Paychex kept more of each dollar of sales as operating profit (38.6% operating margin, against 16.4%).
- Paychex turned more of its sales into free cash flow (35.7% FCF margin, against 30.8%).
- Upwork earned a higher return on the capital invested in it (31.0%, against 26.2%).
- Investors pay more for each dollar of Paychex’s earnings: a P/E of 22.9x against 12.3x for Upwork.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Paychex
PAYX
5/11
Revenue growthOperating marginNet marginFCF marginReturn on equity
Upwork
UPWK
5/11
5-year growthGross marginReturn on capitalNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | PAYX FY26 | UPWK FY25 |
|---|---|---|
| Size | ||
| Market cap | $41.3B | $1.2B |
| Revenue | $6.5B | $788M |
| Free cash flow | $2.3B | $242M |
| Net income | $1.8B | $115M |
| Growth | ||
| Revenue growth | 16.9% | 2.4% |
| 5-year growth | 9.9% | 16.1% |
| Share count change | −0.6% | −1.7% |
| Profitability | ||
| Gross margin | 74.3% | 77.8% |
| Operating margin | 38.6% | 16.4% |
| Net margin | 27.0% | 14.7% |
| FCF margin | 35.7% | 30.8% |
| Return on capital | 26.2% | 31.0% |
| Return on equity | 44.8% | 19.2% |
| Balance sheet | ||
| Net debt | $3.4B | −$313M |
| Net debt / EBITDA | 1.2x | −2.0x |
| Dividends and buybacks | $2.2B | $136M |
| Valuation & quality | ||
| P/E | 22.9x | 12.3x |
| Piotroski F-score | 6 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.