Jack Henry & Associates (NASDAQ: JKHY) is one of 186 public companies in the “IT Services & Consulting” industry, but how does it compare to its rivals? We will compare Jack Henry & Associates to similar companies based on the strength of its analyst recommendations, dividends, institutional ownership, profitability, valuation, earnings and risk.

Earnings and Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Jack Henry & Associates $1.43 billion $245.79 million 36.14
Jack Henry & Associates Competitors $2.81 billion $293.37 million 311.56

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

Risk & Volatility

Jack Henry & Associates has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Jack Henry & Associates’ rivals have a beta of 1.15, indicating that their average share price is 15% more volatile than the S&P 500.

Institutional & Insider Ownership

89.4% of Jack Henry & Associates shares are held by institutional investors. Comparatively, 61.5% of shares of all “IT Services & Consulting” companies are held by institutional investors. 0.8% of Jack Henry & Associates shares are held by company insiders. Comparatively, 16.3% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Jack Henry & Associates and its rivals’ 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 -73.34% -271.26% -4.55%

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” companies pay a dividend yield of 1.5% and pay out 36.5% of their earnings in the form of a dividend. Jack Henry & Associates has increased its dividend for 13 consecutive years. Jack Henry & Associates lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jack Henry & Associates 0 3 1 0 2.25
Jack Henry & Associates Competitors 725 4646 7406 167 2.54

Jack Henry & Associates presently has a consensus price target of $110.50, indicating a potential downside of 3.55%. As a group, “IT Services & Consulting” companies have a potential upside of 2.20%. Given Jack Henry & Associates’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Jack Henry & Associates has less favorable growth aspects than its rivals.

Summary

Jack Henry & Associates rivals beat Jack Henry & Associates on 11 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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