Critical Contrast: Taboola.com (NASDAQ:TBLA) and Jack Henry & Associates (NASDAQ:JKHY)

Taboola.com (NASDAQ:TBLA) and Jack Henry & Associates (NASDAQ:JKHY) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Taboola.com	5.64%	10.72%	6.37%
Jack Henry & Associates	20.64%	24.03%	17.02%

Volatility and Risk

Taboola.com has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Jack Henry & Associates has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Taboola.com and Jack Henry & Associates, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taboola.com	0	3	5	0	2.62
Jack Henry & Associates	0	4	9	2	2.87

Taboola.com currently has a consensus price target of $5.90, suggesting a potential upside of 11.74%. Jack Henry & Associates has a consensus price target of $186.07, suggesting a potential upside of 22.68%. Given Jack Henry & Associates’ stronger consensus rating and higher probable upside, analysts clearly believe Jack Henry & Associates is more favorable than Taboola.com.

Insider and Institutional Ownership

42.9% of Taboola.com shares are owned by institutional investors. Comparatively, 98.8% of Jack Henry & Associates shares are owned by institutional investors. 20.6% of Taboola.com shares are owned by insiders. Comparatively, 0.6% of Jack Henry & Associates shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Taboola.com and Jack Henry & Associates”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taboola.com	$1.95 billion	0.66	$42.28 million	$0.38	13.89
Jack Henry & Associates	$2.38 billion	4.54	$455.75 million	$7.15	21.21

Jack Henry & Associates has higher revenue and earnings than Taboola.com. Taboola.com is trading at a lower price-to-earnings ratio than Jack Henry & Associates, indicating that it is currently the more affordable of the two stocks.

Summary

Jack Henry & Associates beats Taboola.com on 13 of the 15 factors compared between the two stocks.

About Taboola.com

Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.

About Jack Henry & Associates

Jack Henry & Associates, Inc. is a financial technology company, which engages in the provision of technology solutions and payment processing services. It operates through the following segments: Core, Payments, Complementary, and Corporate and Other. The Core segment provides core information processing platforms to banks and credit unions which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized customer and member information. The Payments segment includes secure payment processing tools and services including ATM, debit, and credit card processing services, online and mobile bill pay solutions, ACH origination and remote deposit capture processing, and risk management products and services. The Complementary segment focuses on additional software, hosted processing platforms, and services including call center support, network security management, consulting, and monitoring. The Corporate and Other segment offers hardware and other products. The company was founded by Jerry D. Hall and John W. Henry in 1976 and is headquartered in Monett, MO.