Jack Henry & Associates (NASDAQ: JKHY) and Xura (NASDAQ:MESG) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.
This is a summary of recent ratings and price targets for Jack Henry & Associates and Xura, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jack Henry & Associates||0||2||1||0||2.33|
Jack Henry & Associates currently has a consensus target price of $104.33, indicating a potential downside of 0.93%. Given Jack Henry & Associates’ higher probable upside, equities research analysts plainly believe Jack Henry & Associates is more favorable than Xura.
This table compares Jack Henry & Associates and Xura’s 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%|
Jack Henry & Associates pays an annual dividend of $1.24 per share and has a dividend yield of 1.2%. Xura 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.
Valuation & Earnings
This table compares Jack Henry & Associates and Xura’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Jack Henry & Associates||$1.43 billion||5.70||$446.61 million||$3.14||33.54|
Jack Henry & Associates has higher revenue and earnings than Xura. Xura 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.
Institutional and Insider Ownership
91.7% of Jack Henry & Associates shares are held by institutional investors. 0.8% of Jack Henry & Associates shares are held by company 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.
Volatility & Risk
Jack Henry & Associates has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Xura has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.
Jack Henry & Associates beats Xura on 10 of the 13 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.
Xura Company Profile
Xura, Inc. (Xura) is a United States-based provider of digital communications services. The Company offers a portfolio of digital services solutions that enable global communications across a range of mobile devices and platforms. Its digital communications services include Xura Network Function Virtualization (NFV), Xura Rich Communications Suite (RCS), Xura Signaling Fraud Management, Xura Telco-Web Gateways, Xura Communications Suite and Xura Message Controller. Its monetization services include low credit services and value added services. The Company helps communication service providers (CSPs) and enterprises to navigate and monetize the digital ecosystem through its cloud-based offerings. It also offers Rich Web and Mobile Application Development Framework. The Company helps operators around the world to secure their networks and protect their customers. The Company offers its solutions to people through service providers and enterprises in approximately 140 countries.
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