Head-To-Head Survey: Jack Henry & Associates (JKHY) & CSG Systems International (CSGS)
Jack Henry & Associates (NASDAQ: JKHY) and CSG Systems International (NASDAQ:CSGS) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitabiliy, earnings and risk.
Risk & Volatility
Jack Henry & Associates has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, CSG Systems International has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.
Insider and Institutional Ownership
88.6% of Jack Henry & Associates shares are held by institutional investors. Comparatively, 95.0% of CSG Systems International shares are held by institutional investors. 0.8% of Jack Henry & Associates shares are held by insiders. Comparatively, 2.6% of CSG Systems International shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of current ratings and price targets for Jack Henry & Associates and CSG Systems International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jack Henry & Associates||0||3||0||0||2.00|
|CSG Systems International||0||0||1||0||3.00|
Jack Henry & Associates currently has a consensus target price of $90.00, suggesting a potential downside of 13.37%. CSG Systems International has a consensus target price of $47.00, suggesting a potential upside of 12.09%. Given CSG Systems International’s stronger consensus rating and higher probable upside, analysts clearly believe CSG Systems International is more favorable than Jack Henry & Associates.
Earnings and Valuation
This table compares Jack Henry & Associates and CSG Systems International’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Jack Henry & Associates||$1.41 billion||5.72||$504.73 million||$3.37||30.83|
|CSG Systems International||$767.20 million||1.77||$152.38 million||$1.88||22.30|
Jack Henry & Associates has higher revenue and earnings than CSG Systems International. CSG Systems International 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.
Jack Henry & Associates pays an annual dividend of $1.24 per share and has a dividend yield of 1.2%. CSG Systems International pays an annual dividend of $0.79 per share and has a dividend yield of 1.9%. Jack Henry & Associates pays out 36.8% of its earnings in the form of a dividend. CSG Systems International pays out 42.0% 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 increased its dividend for 13 consecutive years.
This table compares Jack Henry & Associates and CSG Systems International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Jack Henry & Associates||18.76%||26.86%||15.27%|
|CSG Systems International||8.03%||27.58%||8.29%|
Jack Henry & Associates beats CSG Systems International on 9 of the 17 factors compared between the two stocks.
About Jack Henry & Associates
Jack Henry & Associates, Inc. is a provider of information processing solutions for community banks. The Company offers a range of products and services, including processing transactions, automating business processes, and managing information financial institutions and diverse corporate entities. It operates in two segments: bank systems and services (Bank) and credit union systems and services (Credit Union). It provides its products and services through approximately three business brands, which include Jack Henry Banking, Symitar and ProfitStars. The Core software system consists of the integrated applications required to process deposit, loan, and general ledger transactions, and to maintain centralized customer/member information. Jack Henry Banking markets over three software systems to banks and Symitar markets over two software systems to credit unions. Its subsidiaries include Jack Henry Services, Inc., Symitar Systems, Inc. and Bayside Business Solutions, Inc.
About CSG Systems International
CSG Systems International, Inc. (CSG) is a provider of business support solutions primarily serving the communications industry. The Company provides business support solutions (BSS) to the communications service providers (CSPs), as well as clients in various industries. CSG’s solutions coordinate and manage various aspects of a service provider’s customer interactions, from the initial activation of customer accounts, to the support and fulfillment of various services, and through the calculation, presentment, and accounts receivables management of monthly customer statements. The Company’s primary product solutions include Revenue Management & Customer Experience Solutions; Customer Interaction Management; Managed Services; Mediation and Data Management, and Wholesale Settlement and Routing. The Company employs professional services across various sectors, including solution architecture, project management, systems implementation and business consultancy.
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