# How Paychex (PAYX) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/payx
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on PAYX alone. It places PAYX (Paychex, Inc.) against 16 popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where PAYX stands in the market, and of the alternatives worth a closer look.

Period covered: PAYX's full trading record, from October 1986 through September 2026. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** PAYX is 25.9% below its high, bear-market territory, while the S&P 500 sits 1.3% below a record. That said, it has outpaced the market, rising 23.8% over the past 6 months against 9.1% for the S&P 500 and 11.2% for the Nasdaq 100.
- **Stock or market?:** PAYX fell 1.2% over the past 3 months, 4.9 points ahead of the business services ETF XLI (State Street Industrial Select Sector SPDR ETF), which fell 6.1%. The S&P 500 rose 3.9%. Its business services peers did not move as one over the past 3 months: PAYC (Paycom Software) rose 75.5%, while MAN (ManpowerGroup) fell 19.1%.
- **Past 1 to 3 years:** Over the past year, PAYX fell 7.1% while the S&P 500 rose 15.8%. The same gap shows up over 3 years (7.5% against 89.3%). PAYX finished behind the S&P 500 in both 2024 and 2025.
- **Long term:** PAYX turned $10,000 into $27,300 over the past decade, against $42,100 in the S&P 500.
- **In a crash:** In the 2022 bear market, PAYX held up better than WDAY (Workday), PAYC and PCTY; only ADP (Automatic Data Processing) and BBSI fell less.
- **Diversification:** Against the S&P 500, PAYX has a correlation of 0.52 over 5 years, more closely than 77% of stocks worth at least $300 million. Next to an index fund it is some diversification, but not a hedge.
- **Better options**
  - **Popular alternatives:** V (Visa) and ADP (Automatic Data Processing) earned more than PAYX with less volatility over the past 5 years. V returned 12.8% a year at 22.9% volatility, against 1.5% a year at 25.0%.
  - **Nearby categories and themes:** CTAS (Cintas, business services) and GD (General Dynamics, aerospace & defense) earned more than PAYX with less volatility over the past 5 years. CTAS returned 16.5% a year at 23.1% volatility, against 1.5% a year at 25.0%.
  - **Whole market:** 837 of the 3,633 stocks and funds worth at least $500 million earned more than PAYX with less volatility over the past 5 years, among them VTI (Vanguard Morningstar Total Stock Market ETF), VOO (Vanguard S&P 500 ETF) and BRK-B (Berkshire Hathaway).

## How much would $10,000 in PAYX have grown?

This chart tracks a hypothetical $10,000 investment in PAYX over the past 29 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of PAYX over the same span and PAYX's popular alternatives, among those that traded for the entire period.

- $10,000 invested in PAYX at the end of September 1997 would have grown to $208,673 by September 2026, more than the $132,907 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of PAYX, and INTU finished highest, at $591,451.

## PAYX at a glance

This section summarizes the key facts about the stock, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- PAYX is still 25.9% below its all-time high.
- PAYX's deepest decline since it began trading in 1986 was 64.9%, from November 2000 to August 2002. It took about 11 years from the low to climb back to its old high.
- Over 29 full calendar years, PAYX's best was 2000, when it returned 83.5%, and its worst was 2001, when it lost 27.6%. It lost money in eight of those years.

- Type: Stock, Industrials (Staffing & Employment Services)
- Trading since: October 17, 1986
- Market value: $40B
- Volatility (5 years): 25.0%; Sharpe ratio: 0.19
- Worst decline ever: −64.9%, from November 21, 2000 to August 12, 2002; back at its high by October 21, 2013

| Period | PAYX total return |
| --- | --- |
| 1 month | −2.1% |
| 3 months | −1.2% |
| 6 months | +23.8% |
| year to date | +7.2% |
| 1 year | −7.1% |
| 3 years | +7.5% |
| 5 years | +7.9% |
| 10 years | +173% |

## PAYX against the whole market

Where PAYX ranks among every stock and fund, and what across the market has done better.

### How does PAYX rank among all stocks?

This section ranks PAYX on return, volatility, risk-adjusted return and worst decline against every stock worth at least $300 million with enough history.

- PAYX is among the steadier stocks: its price swings rank in the top 11% of the 2,893 stocks worth at least $300 million, where the top is the calmest.

| Measure | PAYX | Rank |
| --- | --- | --- |
| 1-year return | −7.1% | 2,253 of 3,287 (top 69%) |
| 3-year return | +7.5% | 2,203 of 3,017 (top 74%) |
| 5-year return | +7.9% | 1,619 of 2,893 (top 56%) |
| 10-year return | +173% | 978 of 2,202 (top 45%) |
| Volatility, 5 years | 25.0% | 325 of 2,893 (top 12%) |
| Sharpe ratio, 5 years | 0.19 | 1,882 of 2,893 (top 66%) |
| Worst decline, past 10 years | −45.0% | 287 of 2,187 (top 14%) |

### What has beaten PAYX on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 150 stocks and 687 ETFs worth at least $500 million sit in the green region: each earned more than PAYX over the past 5 years with smaller price swings. That is 23% of the 3,633 screened.
- Among those with at least half PAYX's swings, DXJ has the best return for its risk: 26.6% a year at 19.1% volatility, 24% less than PAYX's 25.0%, and a Sharpe ratio (return above cash per unit of volatility) of 1.34 against 0.19 for PAYX.
- Among PAYX's popular alternatives, V and ADP are in the region. V earned 12.8% a year against 1.5% a year for PAYX, at 22.9% volatility, 9% less than PAYX's 25.0%.

### Is there a better investment than PAYX?

The table below lists investments that beat PAYX over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes.

- Among PAYX's popular alternatives, V and ADP earned more than PAYX with less volatility over the past 5 years. V returned 12.8% a year at 22.9% volatility, against 1.5% a year at 25.0%.
- Looking beyond its popular alternatives, CTAS (business services) and GD (aerospace & defense) earned more than PAYX with less volatility over the past 5 years. CTAS returned 16.5% a year at 23.1% volatility, against 1.5% a year at 25.0%.
- Across the whole market, 837 of the 3,633 stocks and funds worth at least $500 million earned more than PAYX with less volatility over the past 5 years, among them VTI, VOO and BRK-B.

The 15 strongest of 837 investments that beat PAYX over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with PAYX | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| PAYX: Paychex, Inc. (this page) |  | +1.5% | 25.0% | 0.19 | −45.0% | +173% |  |  |
| [KO](https://easycompare.io/research/ko): The Coca-Cola Company | Food & Beverages | +14.7% | 16.8% | 0.91 | −37.0% | +204% | 0.35 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [SGOV](https://easycompare.io/research/sgov): iShares 0-3 Month Treasury Bond ETF | Treasury Bonds | +3.8% | 0.3% | 13.25 | −0.3% | — | 0.10 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | Gold | +17.7% | 18.9% | 0.96 | −26.4% | +213% | 0.11 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VYM](https://easycompare.io/research/vym): Vanguard High Dividend Yield ETF | US Dividend Equity | +11.3% | 13.8% | 0.85 | −35.2% | +208% | 0.55 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [RSG](https://easycompare.io/research/rsg): Republic Services, Inc. | Environmental Services | +13.9% | 18.5% | 0.80 | −34.0% | +446% | 0.46 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| JAAA: Janus Henderson AAA CLO ETF | CLO Bonds | +5.1% | 1.7% | 2.98 | −2.6% | — | 0.17 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [MRSH](https://easycompare.io/research/mrsh): Marsh & McLennan Companies, Inc. | Insurance | +4.4% | 20.9% | 0.31 | −35.8% | +245% | 0.71 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [WCN](https://easycompare.io/research/wcn): Waste Connections, Inc. | Environmental Services | +6.1% | 20.0% | 0.40 | −31.6% | +270% | 0.49 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| HDV: iShares Core High Dividend ETF | US Dividend Equity | +12.9% | 13.0% | 1.00 | −37.0% | +172% | 0.54 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| USMV: iShares MSCI USA Min Vol Factor ETF | US Low-Volatility Equity | +7.6% | 12.3% | 0.66 | −33.1% | +176% | 0.67 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VTI](https://easycompare.io/research/vti): Vanguard Morningstar Total Stock Market ETF | US Total Market | +11.5% | 17.5% | 0.71 | −35.0% | +302% | 0.52 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VOO](https://easycompare.io/research/voo): Vanguard S&P 500 ETF | US Large-Cap Equity | +12.8% | 16.9% | 0.80 | −34.0% | +324% | 0.52 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [WMT](https://easycompare.io/research/wmt): Walmart Inc. | Discount Retail | +20.8% | 22.6% | 0.96 | −25.7% | +508% | 0.20 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [BRK-B](https://easycompare.io/research/brk-b): Berkshire Hathaway Inc. | Insurance | +13.4% | 17.1% | 0.82 | −29.6% | +274% | 0.49 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| NOBL: ProShares - S&P 500 Dividend Aristocrats ETF | US Dividend Equity | +6.5% | 14.5% | 0.51 | −35.4% | +172% | 0.59 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |

## PAYX against its popular alternatives

The investments people most often weigh against PAYX, compared period by period and year by year.

### How do PAYX's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Only V and ADP were both more rewarding and calmer than PAYX over the past 5 years, earning a higher annual return with lower volatility.
- 12 of the 16 popular alternatives earned less than PAYX over the past 5 years while swinging more, the weaker corner of the map.
- Over the past 5 years, PAYX returned 1.5% a year, less than the S&P 500's 12.7%, with higher volatility (25.0% against 17.1%).

### Has PAYX consistently beaten its popular alternatives?

This section compares PAYX with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Three of the 16 popular alternatives, V, ADP and CRM, outperformed PAYX in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- V and ADP outperformed PAYX in every long-term period and in all but one short-term period, the most consistent record in the group.
- V and ADP earned more for the risk they took than PAYX (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of PAYX | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| PAYX: Paychex, Inc. (this page) | −7.1% | +7.5% | +7.9% | +173% |  |  | 0.19 |
| [V](https://easycompare.io/research/v): Visa Inc. | +19.0% | +78.2% | +82.5% | +429% | 5/5 short-term, 3/3 long-term | all-weather | 0.64 |
| [ADP](https://easycompare.io/research/adp): Automatic Data Processing, Inc. | +6.4% | +30.2% | +53.6% | +320% | 5/5 short-term, 3/3 long-term | all-weather | 0.49 |
| [CRM](https://easycompare.io/research/crm): Salesforce, Inc. | −3.9% | +21.3% | −14.8% | +240% | 4/5 short-term, 2/3 long-term | consistent | 0.12 |
| KFY: Korn Ferry | +9.2% | +68.7% | +9.3% | +312% | 2/5 short-term, 3/3 long-term |  | 0.21 |
| BBSI: Barrett Business Services, Inc. | −22.2% | +46.9% | +65.4% | +227% | 0/5 short-term, 3/3 long-term |  | 0.49 |
| PAYC: Paycom Software, Inc. | +31.7% | +3.8% | −47.4% | +453% | 5/5 short-term, 1/3 long-term |  | -0.04 |
| PCTY: Paylocity Holding Corporation | +12.1% | −10.2% | −41.4% | +288% | 5/5 short-term, 1/3 long-term |  | -0.06 |
| TNET: TriNet Group, Inc. | +18.5% | −34.7% | −23.6% | +277% | 5/5 short-term, 1/3 long-term |  | 0.05 |
| KFRC: Kforce Inc. | +91.1% | −1.7% | −9.7% | +234% | 3/5 short-term, 1/3 long-term |  | 0.15 |
| HUBS: HubSpot, Inc. | −44.5% | −41.6% | −68.5% | +377% | 2/5 short-term, 1/3 long-term |  | -0.11 |
| [INTU](https://easycompare.io/research/intu): Intuit Inc. | −48.9% | −32.1% | −38.8% | +237% | 2/5 short-term, 1/3 long-term |  | -0.06 |
| NSP: Insperity, Inc. | +13.3% | −41.8% | −49.3% | +81.0% | 4/5 short-term, 0/3 long-term |  | -0.07 |
| [WDAY](https://easycompare.io/research/wday): Workday, Inc. | −15.4% | −3.4% | −26.4% | +132% | 3/5 short-term, 0/3 long-term |  | 0.06 |
| RHI: Robert Half Inc. | +19.3% | −46.2% | −62.2% | +19.6% | 3/5 short-term, 0/3 long-term |  | -0.32 |
| MAN: ManpowerGroup Inc. | +32.9% | −30.1% | −49.8% | −19.8% | 3/5 short-term, 0/3 long-term |  | -0.13 |
| ASUR: Asure Software, Inc. | −17.1% | −15.7% | −20.8% | +4.1% | 0/5 short-term, 0/3 long-term |  | 0.15 |

### How did PAYX do year by year?

This table shows each investment's total return in every full calendar year since 1997, along with where PAYX ranked among its popular alternatives each year.

- PAYX finished ahead of the S&P 500 in 14 of its 29 full calendar years, and behind it in each of the last three.
- Among its popular alternatives, V came out ahead of PAYX most often, in 13 of the 17 years both traded.
- Ranked against its popular alternatives each year, PAYX finished in the top quarter in three of 29 years and in the bottom quarter in four. In 2025, it ranked 8 of 17.

| Year | PAYX | SPY |
| --- | --- | --- |
| 2025 | −17.5% | +17.7% |
| 2024 | +21.3% | +24.9% |
| 2023 | +6.2% | +26.2% |
| 2022 | −13.2% | −18.2% |
| 2021 | +50.1% | +28.7% |
| 2020 | +13.3% | +18.3% |
| 2019 | +34.5% | +31.2% |
| 2018 | −1.1% | −4.6% |
| 2017 | +15.4% | +21.7% |
| 2016 | +18.9% | +12.0% |

## Risk and diversification

How PAYX has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were PAYX's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all three of PAYX's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: PAYX fell 45.0% from June 2025 to April 2026, while the S&P 500 rose 14.7%.
- The slowest recovery came after PAYX fell 64.9% from November 2000 to August 2002; it did not regain that peak until October 2013, 11 years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −64.9% | November 21, 2000 | August 12, 2002 | October 21, 2013 | −31.6% | dot-com bust |
| −54.5% | June 7, 1989 | August 23, 1990 | September 19, 1991 | — |  |
| −45.0% | June 6, 2025 | April 10, 2026 | not yet | +14.7% |  |
| −44.1% | February 20, 2020 | March 23, 2020 | November 6, 2020 | −33.4% | Covid crash |
| −41.5% | October 5, 1987 | October 28, 1987 | January 27, 1989 | — |  |

### How did PAYX do in stock market crashes?

This section measures how far PAYX, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- Among its popular alternatives, ADP held up best, falling less than PAYX in seven of the ten crashes they both traded through.
- PAYX fell further than the S&P 500 in five of the ten crashes it has traded through. The clearest case was the dot-com bust, when PAYX fell 64.9% and the S&P 500 fell 47.5%.

| Crash | Dates | PAYX fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −64.9% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −49.5% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −1.0% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −14.6% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −14.8% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −7.1% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −17.4% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −44.1% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −22.6% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −4.3% | −3.4% |

### How closely does PAYX move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Ten of the 16 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than PAYX's 0.77, led by V, ADP and PAYC.
- V took just 79% of the S&P 500's losses, against 114% for PAYX, while still keeping 93% of its gains.
- Over the past 10 years, PAYX captured 87% of the S&P 500's gains in rising months and 114% of its losses in falling months, with a beta of 0.89. Its share of the market's losses was larger than its share of the gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| PAYX: Paychex, Inc. (this page) | 87.0% | 114% | 0.89 |
| [V](https://easycompare.io/research/v): Visa Inc. | 93.0% | 79.0% | 0.87 |
| [ADP](https://easycompare.io/research/adp): Automatic Data Processing, Inc. | 89.0% | 88.0% | 0.79 |
| [CRM](https://easycompare.io/research/crm): Salesforce, Inc. | 115% | 143% | 1.16 |
| KFY: Korn Ferry | 129% | 157% | 1.41 |
| BBSI: Barrett Business Services, Inc. | 106% | 136% | 1.25 |
| PAYC: Paycom Software, Inc. | 110% | 114% | 1.12 |
| PCTY: Paylocity Holding Corporation | 94.0% | 106% | 0.88 |
| TNET: TriNet Group, Inc. | 122% | 161% | 1.20 |
| KFRC: Kforce Inc. | 101% | 117% | 1.10 |
| HUBS: HubSpot, Inc. | 121% | 149% | 1.46 |
| [INTU](https://easycompare.io/research/intu): Intuit Inc. | 99.0% | 126% | 1.03 |
| NSP: Insperity, Inc. | 83.0% | 126% | 1.01 |
| [WDAY](https://easycompare.io/research/wday): Workday, Inc. | 96.0% | 139% | 1.19 |
| RHI: Robert Half Inc. | 92.0% | 160% | 1.21 |
| MAN: ManpowerGroup Inc. | 101% | 191% | 1.39 |
| ASUR: Asure Software, Inc. | 71.0% | 128% | 0.86 |

### What diversifies PAYX?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in PAYX into DXJ would have cut the portfolio's volatility by 18% over the past 5 years and raised its annual return (+0.4% for PAYX alone, +5.9% for the mix).
- FIX made money in six of the eight calendar years in which PAYX lost money.
- Among large ETFs, LVHI, DXJ and PJUL have moved largely independently of PAYX over the past 5 years, with correlations of 0.47 or lower, and each still earned a positive 5-year return.

| Investment | Correlation with PAYX | 5Y return | Volatility | Sharpe | Rose in PAYX's 8 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.39 | +119% | 11.1% | 1.48 | 2 of 8 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.18 | +225% | 19.1% | 1.34 | 2 of 8 |
| PJUL: Innovator U.S. Equity Power Buffer ETF | 0.47 | +64.4% | 8.6% | 1.20 | 1 of 8 |
| MLPX: Global X - MLP & Energy Infrastructure ETF | 0.44 | +135% | 19.7% | 0.97 | 2 of 8 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 0.12 | +323% | 36.9% | 0.97 | 2 of 8 |
| DBEF: Xtrackers MSCI EAFE Hedged Equity ETF | 0.44 | +85.0% | 13.8% | 0.96 | 1 of 8 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.11 | +126% | 18.9% | 0.96 | 3 of 8 |
| IOO: iShares Global 100 ETF | 0.46 | +107% | 17.2% | 0.94 | 3 of 8 |

## Common questions

### What was PAYX's worst drawdown?

PAYX's deepest decline since it began trading in 1986 was 64.9%, from November 2000 to August 2002. It took about 11 years from the low to climb back to its old high.

### What were PAYX's best and worst years?

Over 29 full calendar years, PAYX's best year was 2000, when it returned 83.5%. Its worst was 2001, with a return of -27.6%.

### Is there a better investment than PAYX?

Among PAYX's popular alternatives, V and ADP earned more than PAYX with less volatility over the past 5 years. V returned 12.8% a year at 22.9% volatility, against 1.5% a year at 25.0%. Looking beyond its popular alternatives, CTAS (business services) and GD (aerospace & defense) earned more than PAYX with less volatility over the past 5 years. CTAS returned 16.5% a year at 23.1% volatility, against 1.5% a year at 25.0%.

### Is PAYX more volatile than the S&P 500?

Yes. PAYX's volatility over the past 5 years was 25.0%, 1.5 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, PAYX's return lands within 25.0% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is PAYX's Sharpe ratio?

PAYX's Sharpe ratio over the past 5 years was 0.19, against 0.79 for the S&P 500, so PAYX earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is PAYX with the S&P 500?

Over the past 5 years, PAYX's monthly returns had a correlation of 0.52 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against PAYX instead: the lower it is, the more that option would diversify a PAYX holding.

### What are the best alternatives to PAYX?

Of the 16 popular alternatives we compared, three outperformed PAYX in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: V, ADP and CRM.

### Did PAYX outperform the S&P 500?

PAYX finished ahead of the S&P 500 (SPY) in 14 of 29 full calendar years. In 2025, it returned -17.5%, against +17.7% for the index.

### How did PAYX do in stock market crashes?

PAYX fell less than the S&P 500 (SPY) in four of the ten major crashes it has traded through, and further in five. The clearest case was the dot-com bust, when PAYX fell 64.9% and the S&P 500 fell 47.5%.

### What diversifies PAYX?

These had a low correlation with PAYX over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.39), DXJ (correlation 0.18) and PJUL (correlation 0.47); among large stocks, CAH (correlation 0.23), CLS (correlation 0.06) and FIX (correlation 0.07). A correlation near zero means the two have moved largely independently.

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## Explore further

- Full page with charts: https://easycompare.io/research/payx
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against PAYX live: https://betterthanspy.com/?b=PAYX&utm_source=easycompare&utm_medium=research