Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, payroll and personnel services provider Paychex (NASDAQ:PAYX) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Paychex's business and see what CAPS investors are saying about the stock right now.

Paychex facts

Headquarters (Founded)

Rochester, N.Y. (1971)

Market Cap

$11.13 billion


Data processing and outsourced services

Trailing-12-Month Revenue

$2.02 billion


CEO Jonathan Judge (since 2004)

CFO John Morphy (since 1995)

Return on Equity (Average, Past 3 Years)



$287.3 million / $0

Dividend Yield



Automatic Data Processing (NASDAQ:ADP)

Administaff (NYSE:ASF)

CAPS Members Bullish on PAYX Also Bullish on

General Electric (NYSE:GE)

Procter & Gamble (NYSE:PG)

CAPS Members Bearish on PAYX Also Bearish on

Citigroup (NYSE:C)


Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 1,215 members who have rated Paychex believe the stock will outperform the S&P 500 going forward. These bulls include All-Star mattro88 and tekennedy.

Just last month, mattro88 tapped the stock as an ideal way to get paid while you wait: "Jobs growth and higher interest rates will benefit Paychex. Both are on the way in the next year or two. Till then, the dividend is good."

In a pitch from two weeks later, tekennedy also advised Fools to start cashing in on Paychex:

1) Market leader (in an industry with scale advantages)
2) In a fragmented market
3) Earning high returns on invested capital
4) With significant room to grow

Add to this that the company has the ability to cross sell its existing customers new products leading to a further avenue for revenue/margin growth. I also like its focus on smaller customers as this seems to have boosted margins considerably. ... With the current market closer to fair value I am going more toward investments like this which have a nice yield and will perform steadily.

What do you think about Paychex, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Paychex is a Motley Fool Inside Value and Income Investor pick. ADP and Procter & Gamble are also Income Investor selections, and Administaff is an Inside Value choice. The Fool owns shares in Procter & Gamble. The Fool's disclosure policy always gets a perfect score.