Financial Analysis: Jack Henry & Associates (NASDAQ:JKHY) versus American Noble Gas (NYSE:INFY)

American Noble Gas (NYSE:INFYGet Free Report) and Jack Henry & Associates (NASDAQ:JKHYGet Free Report) are both large-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Dividends

American Noble Gas pays an annual dividend of $0.44 per share and has a dividend yield of 3.4%. Jack Henry & Associates pays an annual dividend of $2.44 per share and has a dividend yield of 1.5%. American Noble Gas pays out 57.1% of its earnings in the form of a dividend. Jack Henry & Associates pays out 35.1% 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 35 consecutive years.

Earnings and Valuation

This table compares American Noble Gas and Jack Henry & Associates”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Noble Gas $19.85 billion 2.66 $3.16 billion $0.77 16.97
Jack Henry & Associates $2.38 billion 5.00 $455.75 million $6.96 23.63

American Noble Gas has higher revenue and earnings than Jack Henry & Associates. American Noble Gas 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.

Volatility and Risk

American Noble Gas has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Jack Henry & Associates has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for American Noble Gas and Jack Henry & Associates, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Noble Gas 1 7 1 0 2.00
Jack Henry & Associates 0 3 9 1 2.85

American Noble Gas presently has a consensus target price of $16.89, indicating a potential upside of 29.25%. Jack Henry & Associates has a consensus target price of $200.42, indicating a potential upside of 21.89%. Given American Noble Gas’ higher possible upside, research analysts clearly believe American Noble Gas is more favorable than Jack Henry & Associates.

Profitability

This table compares American Noble Gas and Jack Henry & Associates’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Noble Gas 16.16% 30.60% 19.26%
Jack Henry & Associates 20.59% 23.75% 16.80%

Institutional and Insider Ownership

16.2% of American Noble Gas shares are held by institutional investors. Comparatively, 98.8% of Jack Henry & Associates shares are held by institutional investors. 22.4% of American Noble Gas shares are held by company insiders. Comparatively, 0.6% of Jack Henry & Associates shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Jack Henry & Associates beats American Noble Gas on 10 of the 18 factors compared between the two stocks.

About American Noble Gas

(Get Free Report)

Infosys Ltd. is a digital services and consulting company, which engages in the provision of end-to-end business solutions. It operates through the following segments: Financial Services, Retail, Communication, Energy, Utilities, Resources, and Services, Manufacturing, Hi-Tech, Life Sciences, and All Other. The company was founded by Dinesh Krishnan Swamy, Senapathy Gopalakrishnan, Narayana Ramarao Nagavara Murthy, Raghavan N. S., Ashok Arora, Nandan M. Nilekani, and S. D. Shibulal on July 2, 1981 and is headquartered in Bangalore, India.

About Jack Henry & Associates

(Get Free Report)

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.

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