Jack Henry & Associates (NASDAQ:JKHY – Get Free Report) and Kingsway Financial Services (NYSE:KWY – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.
Earnings and Valuation
This table compares Jack Henry & Associates and Kingsway Financial Services”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Jack Henry & Associates | $2.54 billion | 3.93 | $502.78 million | $6.97 | 20.45 |
| Kingsway Financial Services | $134.97 million | 2.03 | -$10.73 million | ($0.30) | -31.53 |
Profitability
This table compares Jack Henry & Associates and Kingsway Financial Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Jack Henry & Associates | 19.76% | 23.49% | 16.34% |
| Kingsway Financial Services | -6.69% | -61.62% | -4.45% |
Insider & Institutional Ownership
98.8% of Jack Henry & Associates shares are owned by institutional investors. Comparatively, 72.4% of Kingsway Financial Services shares are owned by institutional investors. 0.6% of Jack Henry & Associates shares are owned by insiders. Comparatively, 41.4% of Kingsway Financial Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
Jack Henry & Associates has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Kingsway Financial Services has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and price targets for Jack Henry & Associates and Kingsway Financial Services, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Jack Henry & Associates | 0 | 5 | 12 | 1 | 2.78 |
| Kingsway Financial Services | 1 | 0 | 0 | 0 | 1.00 |
Jack Henry & Associates currently has a consensus target price of $191.47, indicating a potential upside of 34.33%. Given Jack Henry & Associates’ stronger consensus rating and higher probable upside, equities analysts clearly believe Jack Henry & Associates is more favorable than Kingsway Financial Services.
Summary
Jack Henry & Associates beats Kingsway Financial Services on 14 of the 15 factors compared between the two stocks.
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.
About Kingsway Financial Services
Kingsway Financial Services Inc., through its subsidiaries, engages in the extended warranty business services, asset management, and real estate businesses. The company operates through three segments: Extended Warranty, Leased Real Estate, and Kingsway Search Xcelerator. The Extended Warranty segment markets, sells, and administers vehicle service agreements and related products for new and used automobiles, motorcycles, and ATVs. This segment also sells new home warranty products, as well as offers uninsured warrant administration services to homebuilders and homeowners; markets and distributes warranty products to manufacturers, distributors, and installers of heating, ventilation and air conditioning, standby generator, commercial LED lighting, and commercial refrigeration equipment; and provides equipment breakdown and maintenance support services to companies. The Leased Real Estate segment owns a parcel of real property consisting of approximately 192 acres located in the State of Texas. The Kingsway Search Xcelerator offers outsourced finance and human resources consulting services, including operational accounting, such as bookkeeping, accounting, financial reporting, and analysis and strategic finance services; technical accounting comprising initial public offerings, SEC reporting, and international consolidation services; human resources, workforce management, and compliance support services; and advisory services. The company offers its products and services through credit unions, dealers, homebuilders, and consumers. Kingsway Financial Services Inc. was incorporated in 1989 and is based in Itasca, Illinois.
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