Jack Henry & Associates (NASDAQ:JKHY – Get Free Report) and Equitable (NYSE:EQH – Get Free Report) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.
Valuation & Earnings
This table compares Jack Henry & Associates and Equitable”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Jack Henry & Associates | $2.54 billion | 4.45 | $502.78 million | $6.97 | 23.19 |
| Equitable | $11.66 billion | 1.30 | -$1.38 billion | ($3.31) | -16.72 |
Jack Henry & Associates has higher earnings, but lower revenue than Equitable. Equitable 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.
Risk & Volatility
Jack Henry & Associates has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Equitable has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.
Insider & Institutional Ownership
98.8% of Jack Henry & Associates shares are owned by institutional investors. Comparatively, 92.7% of Equitable shares are owned by institutional investors. 0.4% of Jack Henry & Associates shares are owned by company insiders. Comparatively, 1.0% of Equitable shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Jack Henry & Associates and Equitable’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Jack Henry & Associates | 19.76% | 23.49% | 16.34% |
| Equitable | 11.53% | 636.12% | 0.65% |
Analyst Ratings
This is a summary of current ratings and price targets for Jack Henry & Associates and Equitable, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Jack Henry & Associates | 0 | 5 | 13 | 1 | 2.79 |
| Equitable | 0 | 3 | 10 | 1 | 2.86 |
Jack Henry & Associates presently has a consensus price target of $190.00, indicating a potential upside of 17.53%. Equitable has a consensus price target of $63.18, indicating a potential upside of 14.17%. Given Jack Henry & Associates’ higher probable upside, analysts plainly believe Jack Henry & Associates is more favorable than Equitable.
Dividends
Jack Henry & Associates pays an annual dividend of $2.44 per share and has a dividend yield of 1.5%. Equitable pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. Jack Henry & Associates pays out 35.0% of its earnings in the form of a dividend. Equitable pays out -36.3% 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 raised its dividend for 35 consecutive years and Equitable has raised its dividend for 2 consecutive years. Equitable is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Jack Henry & Associates beats Equitable on 10 of the 17 factors compared between the two stocks.
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.
About Equitable
Equitable Holdings, Inc., together with its consolidated subsidiaries, operates as a diversified financial services company worldwide. The company operates through six segments: Individual Retirement, Group Retirement, Investment Management and Research, Protection Solutions, Wealth Management, and Legacy. The Individual Retirement segment offers a suite of variable annuity products primarily to affluent and high net worth individuals. The Group Retirement segment provides tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities, and not-for-profit entities, as well as small and medium-sized businesses. The Investment Management and Research segment offers diversified investment management, research, and related services to various clients through institutional. The Protection Solutions segment provides life insurance products, such as VUL insurance and IUL insurance, term life, and employee benefits business, such as dental, vision, life, as well as short- and long-term disability insurance products to small and medium-sized businesses. The Wealth Management segment offers discretionary and non-discretionary investment advisory accounts, financial planning and advice, life insurance, and annuity products. The Legacy segment consists of the capital intensive fixed-rate GMxB business that includes ROP death benefits. The company was formerly known as AXA Equitable Holdings, Inc. and changed its name to Equitable Holdings, Inc. in January 2020. Equitable Holdings, Inc. was founded in 1859 and is based in New York, New York.
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