Head-To-Head Analysis: Jack Henry & Associates (JKHY) and Its Rivals

Jack Henry & Associates (NASDAQ: JKHY) is one of 25 public companies in the “IT Services & Consulting – NEC” industry, but how does it contrast to its competitors? We will compare Jack Henry & Associates to related companies based on the strength of its risk, profitability, analyst recommendations, earnings, valuation, institutional ownership and dividends.

Risk and Volatility

Jack Henry & Associates has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Jack Henry & Associates’ competitors have a beta of 0.98, suggesting that their average stock price is 2% less volatile than the S&P 500.

Dividends

Jack Henry & Associates pays an annual dividend of $1.24 per share and has a dividend yield of 1.1%. Jack Henry & Associates pays out 39.1% of its earnings in the form of a dividend. As a group, “IT Services & Consulting – NEC” companies pay a dividend yield of 1.1% and pay out 38.5% of their earnings in the form of a dividend. Jack Henry & Associates has raised its dividend for 13 consecutive years. Jack Henry & Associates lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations for Jack Henry & Associates and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jack Henry & Associates 0 3 1 0 2.25
Jack Henry & Associates Competitors 78 376 583 9 2.50

Jack Henry & Associates presently has a consensus price target of $110.50, suggesting a potential downside of 1.41%. As a group, “IT Services & Consulting – NEC” companies have a potential upside of 5.56%. Given Jack Henry & Associates’ competitors stronger consensus rating and higher probable upside, analysts plainly believe Jack Henry & Associates has less favorable growth aspects than its competitors.

Profitability

This table compares Jack Henry & Associates and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jack Henry & Associates 17.08% 23.92% 13.64%
Jack Henry & Associates Competitors -48.77% -27.43% -6.59%

Institutional & Insider Ownership

90.1% of Jack Henry & Associates shares are owned by institutional investors. Comparatively, 63.4% of shares of all “IT Services & Consulting – NEC” companies are owned by institutional investors. 0.8% of Jack Henry & Associates shares are owned by insiders. Comparatively, 18.3% of shares of all “IT Services & Consulting – NEC” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Jack Henry & Associates and its competitors gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Jack Henry & Associates $1.43 billion $245.79 million 35.36
Jack Henry & Associates Competitors $1.29 billion -$2.52 million 95.13

Jack Henry & Associates has higher revenue and earnings than its competitors. Jack Henry & Associates is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Jack Henry & Associates competitors beat Jack Henry & Associates on 9 of the 15 factors compared.

About Jack Henry & Associates

Jack Henry & Associates, Inc. is a provider of information processing solutions for community banks. The Company offers a range of products and services, including processing transactions, automating business processes, and managing information financial institutions and diverse corporate entities. It operates in two segments: bank systems and services (Bank) and credit union systems and services (Credit Union). It provides its products and services through approximately three business brands, which include Jack Henry Banking, Symitar and ProfitStars. The Core software system consists of the integrated applications required to process deposit, loan, and general ledger transactions, and to maintain centralized customer/member information. Jack Henry Banking markets over three software systems to banks and Symitar markets over two software systems to credit unions. Its subsidiaries include Jack Henry Services, Inc., Symitar Systems, Inc. and Bayside Business Solutions, Inc.

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