Taboola.com (NASDAQ:TBLA) versus Jack Henry & Associates (NASDAQ:JKHY) Financial Analysis

Jack Henry & Associates (NASDAQ:JKHYGet Free Report) and Taboola.com (NASDAQ:TBLAGet Free Report) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Risk & Volatility

Jack Henry & Associates has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Taboola.com has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Institutional and Insider Ownership

98.8% of Jack Henry & Associates shares are held by institutional investors. Comparatively, 42.9% of Taboola.com shares are held by institutional investors. 0.6% of Jack Henry & Associates shares are held by company insiders. Comparatively, 20.6% of Taboola.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Jack Henry & Associates and Taboola.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jack Henry & Associates 20.64% 24.03% 17.02%
Taboola.com 5.64% 10.72% 6.37%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Jack Henry & Associates and Taboola.com, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jack Henry & Associates 0 4 9 2 2.87
Taboola.com 0 3 5 0 2.62

Jack Henry & Associates currently has a consensus price target of $186.07, indicating a potential upside of 25.53%. Taboola.com has a consensus price target of $5.90, indicating a potential upside of 22.66%. Given Jack Henry & Associates’ stronger consensus rating and higher probable upside, research analysts clearly believe Jack Henry & Associates is more favorable than Taboola.com.

Earnings and Valuation

This table compares Jack Henry & Associates and Taboola.com”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jack Henry & Associates $2.38 billion 4.43 $455.75 million $7.15 20.73
Taboola.com $1.91 billion 0.61 $42.28 million $0.38 12.66

Jack Henry & Associates has higher revenue and earnings than Taboola.com. Taboola.com 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.

Summary

Jack Henry & Associates beats Taboola.com on 13 of the 15 factors compared between the two stocks.

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.

About Taboola.com

(Get Free Report)

Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.

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