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

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 1.6% and pay out 37.2% 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 peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Jack Henry & Associates and its peers’ 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 -20.17% -272.36% -4.59%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Jack Henry & Associates and its peers, 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 722 4631 7374 162 2.54

Jack Henry & Associates presently has a consensus price target of $110.50, indicating a potential downside of 1.73%. As a group, “IT Services & Consulting” companies have a potential upside of 5.15%. Given Jack Henry & Associates’ peers stronger consensus rating and higher probable upside, analysts plainly believe Jack Henry & Associates has less favorable growth aspects than its peers.

Volatility & Risk

Jack Henry & Associates has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Jack Henry & Associates’ peers have a beta of 1.11, indicating that their average stock price is 11% more volatile than the S&P 500.

Insider & Institutional Ownership

89.4% of Jack Henry & Associates shares are held by institutional investors. Comparatively, 62.6% 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, 15.9% 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 stock is poised for long-term growth.

Valuation & Earnings

This table compares Jack Henry & Associates and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Jack Henry & Associates $1.43 billion $245.79 million 35.47
Jack Henry & Associates Competitors $2.79 billion $290.25 million 314.87

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

Summary

Jack Henry & Associates peers beat Jack Henry & Associates on 11 of the 15 factors compared.

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.

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