Comparing Jack Henry & Associates (JKHY) & Internap Corporation (NASDAQ:INAP)
Jack Henry & Associates (NASDAQ: JKHY) and Internap Corporation (NASDAQ:INAP) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitabiliy, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Jack Henry & Associates pays an annual dividend of $1.24 per share and has a dividend yield of 1.2%. Internap Corporation does not pay a dividend. Jack Henry & Associates pays out 36.8% of its earnings in the form of a dividend. Internap Corporation has increased its dividend for 13 consecutive years.
This table compares Jack Henry & Associates and Internap Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Jack Henry & Associates||18.76%||26.86%||15.27%|
This is a summary of current recommendations for Jack Henry & Associates and Internap Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jack Henry & Associates||0||3||0||0||2.00|
Jack Henry & Associates currently has a consensus target price of $90.00, indicating a potential downside of 15.15%. Internap Corporation has a consensus target price of $5.83, indicating a potential upside of 30.21%. Given Internap Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Internap Corporation is more favorable than Jack Henry & Associates.
Institutional & Insider Ownership
87.9% of Jack Henry & Associates shares are owned by institutional investors. Comparatively, 77.4% of Internap Corporation shares are owned by institutional investors. 0.8% of Jack Henry & Associates shares are owned by insiders. Comparatively, 5.8% of Internap Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Jack Henry & Associates and Internap Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Jack Henry & Associates||$1.41 billion||5.84||$504.73 million||$3.37||31.47|
|Internap Corporation||$289.83 million||0.99||$71.04 million||($2.37)||-1.89|
Jack Henry & Associates has higher revenue and earnings than Internap Corporation. Internap Corporation 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.
Risk and Volatility
Jack Henry & Associates has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Internap Corporation has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500.
Jack Henry & Associates beats Internap Corporation on 9 of the 17 factors compared between the two stocks.
Jack Henry & Associates Company Profile
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.
Internap Corporation Company Profile
Internap Corporation is a technology provider of Internet infrastructure. The Company provides Internet infrastructure through both Colocation Business and Enterprise Services and Cloud Services. The Company operates through two segments: Data Center and Network Services, and Cloud and Hosting Services. Its Data Center and Network Services segment consists of colocation and Internet Protocol (IP) connectivity services. Colocation involves providing physical space within data centers and associated services, such as power, interconnection, environmental controls, monitoring and security while allowing its customers to deploy and manage their servers, storage and other equipment in its secure data centers. Its cloud and hosting services segment consists of hosted Infrastructure-as-a-Service as a cloud platform or through managed hosting. For both Infrastructure-as-a-Service options, the Company provides and maintains the hardware, data center infrastructure and interconnection.
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