Financial Survey: Jack Henry & Associates (JKHY) versus Limelight Networks (LLNW)
Jack Henry & Associates (NASDAQ: JKHY) and Limelight Networks (NASDAQ:LLNW) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.
Earnings and Valuation
This table compares Jack Henry & Associates and Limelight Networks’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Jack Henry & Associates||$1.43 billion||5.57||$446.61 million||$3.14||32.74|
|Limelight Networks||$173.36 million||2.50||$6.99 million||($0.14)||-28.36|
Jack Henry & Associates has higher revenue and earnings than Limelight Networks. Limelight Networks 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.
This is a breakdown of recent recommendations and price targets for Jack Henry & Associates and Limelight Networks, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jack Henry & Associates||0||2||1||0||2.33|
Jack Henry & Associates presently has a consensus price target of $104.33, indicating a potential upside of 1.50%. Limelight Networks has a consensus price target of $3.43, indicating a potential downside of 13.52%. Given Jack Henry & Associates’ higher probable upside, equities analysts plainly believe Jack Henry & Associates is more favorable than Limelight Networks.
Jack Henry & Associates pays an annual dividend of $1.24 per share and has a dividend yield of 1.2%. Limelight Networks does not pay a dividend. Jack Henry & Associates pays out 39.5% of its earnings in the form of a dividend. Jack Henry & Associates has raised its dividend for 13 consecutive years.
Risk and Volatility
Jack Henry & Associates has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Limelight Networks has a beta of 2.55, suggesting that its share price is 155% more volatile than the S&P 500.
This table compares Jack Henry & Associates and Limelight Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Jack Henry & Associates||17.17%||24.65%||13.95%|
Institutional and Insider Ownership
91.7% of Jack Henry & Associates shares are held by institutional investors. Comparatively, 69.0% of Limelight Networks shares are held by institutional investors. 0.8% of Jack Henry & Associates shares are held by insiders. Comparatively, 37.6% of Limelight Networks shares are held 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.
Jack Henry & Associates beats Limelight Networks on 11 of the 16 factors compared between the two stocks.
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.
About Limelight Networks
Limelight Networks, Inc. operates a distributed network and provides a suite of integrated services marketed as the Limelight Orchestrate Platform. The Company is engaged in providing content delivery and related services and solutions for global businesses to help them deliver their digital content across Internet, mobile, and social channels. Its services include content delivery services, mobile delivery services, video content management services, performance services, cloud-based storage services and cloud-based content security services. Its solutions include software and device manufacturers, media and broadcasters, and gaming. Limelight services incorporate content and application security, file management, video transformation, distributed storage functionality, and the analytics and reporting associated with them. The Company operates in three geographic areas: Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific.
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