Jack Henry & Associates (NASDAQ:JKHY) and Parsons (NYSE:PSN) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.
Institutional & Insider Ownership
89.7% 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 stock is poised for long-term growth.
Jack Henry & Associates pays an annual dividend of $1.60 per share and has a dividend yield of 1.1%. Parsons does not pay a dividend. Jack Henry & Associates pays out 44.6% of its earnings in the form of a dividend. Jack Henry & Associates has raised its dividend for 15 consecutive years.
This is a breakdown of recent recommendations for Jack Henry & Associates and Parsons, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jack Henry & Associates||0||2||2||0||2.50|
Jack Henry & Associates currently has a consensus price target of $153.00, suggesting a potential upside of 8.93%. Parsons has a consensus price target of $37.33, suggesting a potential upside of 0.01%. Given Jack Henry & Associates’ higher possible upside, equities research analysts clearly believe Jack Henry & Associates is more favorable than Parsons.
Valuation & Earnings
This table compares Jack Henry & Associates and Parsons’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Jack Henry & Associates||$1.54 billion||7.06||$376.66 million||$3.59||39.13|
|Parsons||$3.56 billion||1.04||$222.34 million||N/A||N/A|
Jack Henry & Associates has higher earnings, but lower revenue than Parsons.
This table compares Jack Henry & Associates and Parsons’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Jack Henry & Associates||18.79%||21.72%||14.70%|
Jack Henry & Associates beats Parsons on 10 of the 14 factors compared between the two stocks.
Jack Henry & Associates Company Profile
Jack Henry & Associates, Inc. provides technology solutions and payment processing services primarily for financial services organizations in the United States. The company offers information and transaction processing solutions for banks ranging from community to multi-billion dollar institutions under the Jack Henry Banking brand; core data processing solutions for various credit unions under the Symitar brand; and specialized financial performance, imaging and payments processing, information security and risk management, retail delivery, and online and mobile solutions to financial institutions and corporate entities under the ProfitStars brand. It also provides a suite of integrated applications required to process deposit, loan, and general ledger transactions, as well as to maintain centralized customer/member information; and complementary products and services that enable core bank and credit union clients to respond to evolving customer/member demands. The company's Jack Henry Banking business brand offers SilverLake, a robust IBM Power System primarily designed for commercial-focused banks; CIF 20/20, a system for the community bank market; and Core Director, a Windows-based client/server system. Its Symitar business brand provides Episys, a robust IBM Power System primarily designed for credit unions; and CruiseNet, a Windows-based client/server system designed primarily for credit unions. In addition, the company offers electronic payment solutions; purchases and resells hardware systems, including servers, workstations, scanners, and other devices; and provides implementation, training, and support services. Jack Henry & Associates, Inc. was founded in 1976 and is headquartered in Monett, Missouri.
Parsons Company Profile
Parsons Corporation provides technology based solutions in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. It operates in two segments, Federal Solutions and Critical Infrastructure. The company offers cybersecurity software and engineering services, hardware prototyping, and other technical services to the U.S. Army and the United States intelligence community; ThunderRidge, a tool that assists cyber operational users to develop action plans, assess cyber threats, and disseminate situational awareness in real-time; and geospatial intelligence, big data analytics, and threat mitigation technology services to the defense, intelligence, space and command, control, communications, computer, cyber, intelligence, surveillance, and reconnaissance. It also provides mission planning for space situational awareness, small satellite systems integration, electronic warfare, directed energy modeling and simulation, and command and control systems and support to the Missile Defense Agency, the U.S. Air Force, and the U.S. Army; converged cyber-physical solutions for critical infrastructure, and global military mission readiness and training services to the Federal Aviation Administration and the U.S. Army; and technology services for advanced energy production systems, healthcare systems, environmental systems, and related infrastructure. In addition, the company offers intelligent transportation system management, train controls integration, smart cities software, and critical infrastructure cyber protection to the transportation authorities, rail, and transit entities; engineering services for complex infrastructure, including bridges and tunnels, roads and highways, airports, and rail and transit; and engineering, program management, and environmental solutions to private-sector industrial clients and public utilities. Parsons Corporation was founded in 1944 and is headquartered in Centreville, Virginia.
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