CoStar Group (NASDAQ:CSGP – Get Free Report) and Jack Henry & Associates (NASDAQ:JKHY – Get Free Report) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.
Profitability
This table compares CoStar Group and Jack Henry & Associates’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CoStar Group | 0.66% | 2.45% | 1.99% |
| Jack Henry & Associates | 19.86% | 23.11% | 16.10% |
Analyst Ratings
This is a summary of recent recommendations and price targets for CoStar Group and Jack Henry & Associates, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CoStar Group | 2 | 5 | 12 | 1 | 2.60 |
| Jack Henry & Associates | 0 | 6 | 5 | 1 | 2.58 |
Earnings and Valuation
This table compares CoStar Group and Jack Henry & Associates”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CoStar Group | $2.74 billion | 10.04 | $138.70 million | $0.05 | 1,296.60 |
| Jack Henry & Associates | $2.38 billion | 5.73 | $455.75 million | $6.58 | 28.59 |
Jack Henry & Associates has lower revenue, but higher earnings than CoStar Group. Jack Henry & Associates is trading at a lower price-to-earnings ratio than CoStar Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
CoStar Group has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Jack Henry & Associates has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.
Insider and Institutional Ownership
96.6% of CoStar Group shares are owned by institutional investors. Comparatively, 98.8% of Jack Henry & Associates shares are owned by institutional investors. 1.1% of CoStar Group shares are owned by insiders. Comparatively, 0.6% of Jack Henry & Associates shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
CoStar Group beats Jack Henry & Associates on 8 of the 14 factors compared between the two stocks.
About CoStar Group
CoStar Group, Inc. provides information, analytics, and online marketplace services to the commercial real estate, hospitality, residential, and related professionals industries in the United States, Canada, Europe, the Asia Pacific, and Latin America. The company offers CoStar Property that provides inventory of office, industrial, retail, multifamily, hospitality, and student housing properties and land; CoStar Sales, a robust database of comparable commercial real estate sales transactions; CoStar Market Analytics to view and report on aggregated market and submarket trends; and CoStar Tenant, an online business-to-business prospecting and analytical tool that provides tenant information. It also provides Leasing, a tool to capture, manage, and maintain lease data; CoStar Lease Analysis; Public Record, a searchable database of commercially zoned parcels; CoStar Real Estate Manager, a real estate lease administration, portfolio management, and lease accounting compliance software solution; and CoStar Risk Analytics and CoStar Investment. In addition, it offers apartment marketing sites, such as ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, WestsideRentals.com, AFTER55.com, CorporateHousing.com, ForRentUniversity.com, Apartamentos.com, and Off Campus Partners; LoopNet Premium Lister; LoopNet Diamond, Platinum, and Gold Ads; LandsofAmerica.com, LandAndFarm.com, and LandWatch.com for rural land for-sale; BizBuySell.com, BizQuest.com, and FindaFranchise.com for operating businesses and franchises for-sale; Ten-X, an online auction platform for commercial real estate; and HomeSnap, an online and mobile software platform, as well as Homes.com, a homes for sale listings site. The company was founded in 1987 and is headquartered in Washington, the District of Columbia.
About Jack Henry & Associates
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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