Jack Henry & Associates (NASDAQ:JKHY) and Fidelity National Information Services (NYSE:FIS) are both large-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.
Volatility & Risk
Jack Henry & Associates has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Fidelity National Information Services has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.
Valuation and Earnings
This table compares Jack Henry & Associates and Fidelity National Information Services' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Jack Henry & Associates | $1.70 billion | 7.12 | $296.67 million | $3.86 | 41.15 |
| Fidelity National Information Services | $10.33 billion | 9.19 | $298 million | $5.61 | 27.20 |
Fidelity National Information Services has higher revenue and earnings than Jack Henry & Associates. Fidelity National Information Services 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 & Insider Ownership
88.8% of Jack Henry & Associates shares are owned by institutional investors. Comparatively, 90.5% of Fidelity National Information Services shares are owned by institutional investors. 0.8% of Jack Henry & Associates shares are owned by insiders. Comparatively, 0.7% of Fidelity National Information Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Jack Henry & Associates and Fidelity National Information Services' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Jack Henry & Associates | 17.45% | 19.59% | 13.01% |
| Fidelity National Information Services | -0.83% | 6.88% | 4.08% |
Dividends
Jack Henry & Associates pays an annual dividend of $1.84 per share and has a dividend yield of 1.2%. Fidelity National Information Services pays an annual dividend of $1.56 per share and has a dividend yield of 1.0%. Jack Henry & Associates pays out 47.7% of its earnings in the form of a dividend. Fidelity National Information Services pays out 27.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Jack Henry & Associates has raised its dividend for 1 consecutive years and Fidelity National Information Services has raised its dividend for 1 consecutive years.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Jack Henry & Associates and Fidelity National Information Services, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Jack Henry & Associates | 0 | 7 | 5 | 0 | 2.42 |
| Fidelity National Information Services | 0 | 6 | 17 | 1 | 2.79 |
Jack Henry & Associates currently has a consensus price target of $175.8571, suggesting a potential upside of 10.71%. Fidelity National Information Services has a consensus price target of $159.8333, suggesting a potential upside of 4.73%. Given Jack Henry & Associates' higher probable upside, equities research analysts clearly believe Jack Henry & Associates is more favorable than Fidelity National Information Services.
Summary
Fidelity National Information Services beats Jack Henry & Associates on 10 of the 17 factors compared between the two stocks.
