Jack Henry & Associates (JKHY) Competitors

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

Is JKHY or PAYX more profitable?

Paychex has a net margin of 29.75% compared to Jack Henry & Associates' net margin of 18.50%. Paychex's return on equity of 45.01% beat Jack Henry & Associates' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Jack Henry & Associates	18.50%	22.07%	14.68%
Paychex	29.75%	45.01%	14.77%

Does the media favor JKHY or PAYX?

In the previous week, Paychex had 25 more articles in the media than Jack Henry & Associates. MarketBeat recorded 39 mentions for Paychex and 14 mentions for Jack Henry & Associates. Jack Henry & Associates' average media sentiment score of 1.14 beat Paychex's score of 1.07 indicating that Jack Henry & Associates is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Jack Henry & Associates	8 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Paychex	22 Very Positive mention(s)	2 Positive mention(s)	7 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk and volatility, JKHY or PAYX?

Jack Henry & Associates has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Paychex has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Do analysts prefer JKHY or PAYX?

Jack Henry & Associates presently has a consensus price target of $185.11, indicating a potential upside of 3.83%. Paychex has a consensus price target of $150.20, indicating a potential upside of 4.76%. Given Paychex's higher probable upside, analysts plainly believe Paychex is more favorable than Jack Henry & Associates.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jack Henry & Associates	1 Sell rating(s)	8 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.09
Paychex	1 Sell rating(s)	10 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.91

Do insiders & institutionals have more ownership in JKHY or PAYX?

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

Is JKHY or PAYX a better dividend stock?

Jack Henry & Associates pays an annual dividend of $2.32 per share and has a dividend yield of 1.3%. Paychex pays an annual dividend of $4.32 per share and has a dividend yield of 3.0%. Jack Henry & Associates pays out 39.5% of its earnings in the form of a dividend. Paychex pays out 94.5% 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 has increased its dividend for 35 consecutive years and Paychex has increased its dividend for 3 consecutive years.

Which has preferable valuation and earnings, JKHY or PAYX?

Paychex has higher revenue and earnings than Jack Henry & Associates. Jack Henry & Associates is trading at a lower price-to-earnings ratio than Paychex, 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
Jack Henry & Associates	$2.22B	5.86	$381.82M	$5.87	30.37
Paychex	$5.57B	9.27	$1.66B	$4.57	31.37

Summary

Paychex beats Jack Henry & Associates on 12 of the 19 factors compared between the two stocks.