Jack Henry & Associates (JKHY) Competitors

Paychex (NASDAQ:PAYX) and Jack Henry & Associates (NASDAQ:JKHY) are both large-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, media sentiment, profitability, valuation, earnings, risk, institutional ownership and community ranking.

Do insiders & institutionals hold more shares of PAYX or JKHY?

83.5% of Paychex shares are held by institutional investors. Comparatively, 98.8% of Jack Henry & Associates shares are held by institutional investors. 11.4% of Paychex shares are held by insiders. Comparatively, 1.4% of Jack Henry & Associates shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Does the media prefer PAYX or JKHY?

In the previous week, Paychex had 14 more articles in the media than Jack Henry & Associates. MarketBeat recorded 26 mentions for Paychex and 12 mentions for Jack Henry & Associates. Paychex's average media sentiment score of 1.24 beat Jack Henry & Associates' score of 1.12 indicating that Paychex is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Paychex	21 Very Positive mention(s)	0 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Jack Henry & Associates	6 Very Positive mention(s)	3 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk and volatility, PAYX or JKHY?

Paychex has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Jack Henry & Associates has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Do analysts rate PAYX or JKHY?

Paychex presently has a consensus target price of $132.23, suggesting a potential downside of 9.61%. Jack Henry & Associates has a consensus target price of $186.80, suggesting a potential upside of 7.88%. Given Jack Henry & Associates' stronger consensus rating and higher possible upside, analysts clearly believe Jack Henry & Associates is more favorable than Paychex.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paychex	2 Sell rating(s)	11 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.85
Jack Henry & Associates	1 Sell rating(s)	9 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.08

Is PAYX or JKHY more profitable?

Paychex has a net margin of 32.02% compared to Jack Henry & Associates' net margin of 17.79%. Paychex's return on equity of 45.28% beat Jack Henry & Associates' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Paychex	32.02%	45.28%	15.61%
Jack Henry & Associates	17.79%	21.81%	13.94%

Is PAYX or JKHY a better dividend stock?

Paychex pays an annual dividend of $3.92 per share and has a dividend yield of 2.7%. Jack Henry & Associates pays an annual dividend of $2.20 per share and has a dividend yield of 1.3%. Paychex pays out 82.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Jack Henry & Associates pays out 40.3% of its earnings in the form of a dividend. Paychex has raised its dividend for 14 consecutive years and Jack Henry & Associates has raised its dividend for 34 consecutive years.

Does the MarketBeat Community favor PAYX or JKHY?

Paychex received 43 more outperform votes than Jack Henry & Associates when rated by MarketBeat users. However, 52.91% of users gave Jack Henry & Associates an outperform vote while only 41.63% of users gave Paychex an outperform vote.

Company	Underperform	Outperform
Paychex	Outperform Votes 343 41.63%	Underperform Votes 481 58.37%
Jack Henry & Associates	Outperform Votes 300 52.91%	Underperform Votes 267 47.09%

Which has higher earnings and valuation, PAYX or JKHY?

Paychex has higher revenue and earnings than Jack Henry & Associates. Paychex 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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paychex	$5.28B	9.98	$1.69B	$4.75	30.80
Jack Henry & Associates	$2.25B	5.63	$381.82M	$5.46	31.71

Summary

Paychex beats Jack Henry & Associates on 12 of the 21 factors compared between the two stocks.