CSRA (CSRA) vs. Jack Henry & Associates (JKHY) Head to Head Survey

CSRA (NYSE: CSRA) and Jack Henry & Associates (NASDAQ:JKHY) are both mid-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, risk, profitability, dividends, earnings and analyst recommendations.

Analyst Ratings

How to Become a New Pot Stock Millionaire

This is a summary of recent recommendations and price targets for CSRA and Jack Henry & Associates, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CSRA 1 8 1 0 2.00
Jack Henry & Associates 0 5 1 0 2.17

CSRA currently has a consensus price target of $37.47, suggesting a potential downside of 9.12%. Jack Henry & Associates has a consensus price target of $119.00, suggesting a potential downside of 0.44%. Given Jack Henry & Associates’ stronger consensus rating and higher possible upside, analysts plainly believe Jack Henry & Associates is more favorable than CSRA.

Dividends

CSRA pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. Jack Henry & Associates pays an annual dividend of $1.48 per share and has a dividend yield of 1.2%. CSRA pays out 20.9% of its earnings in the form of a dividend. Jack Henry & Associates pays out 47.1% 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 14 consecutive years. Jack Henry & Associates is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares CSRA and Jack Henry & Associates’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CSRA $4.99 billion 1.35 $304.00 million $1.91 21.59
Jack Henry & Associates $1.43 billion 6.45 $245.79 million $3.14 38.06

CSRA has higher revenue and earnings than Jack Henry & Associates. CSRA 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.

Profitability

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

Net Margins Return on Equity Return on Assets
CSRA 7.46% 68.98% 6.50%
Jack Henry & Associates 23.35% 23.11% 13.45%

Risk & Volatility

CSRA has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Jack Henry & Associates has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Insider and Institutional Ownership

94.3% of CSRA shares are held by institutional investors. Comparatively, 88.7% of Jack Henry & Associates shares are held by institutional investors. 0.4% of CSRA shares are held by insiders. Comparatively, 0.8% of Jack Henry & Associates shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Jack Henry & Associates beats CSRA on 10 of the 16 factors compared between the two stocks.

About CSRA

CSRA Inc. is a provider of information technology services to the United States federal government. The Company operates through two segments: Defense and Intelligence, and Civil. The Defense and Intelligence segment provides services to the Department of Defense (DoD), National Security Agency, branches of the Armed Forces, and other DoD and Intelligence agencies. The Civil segment provides services to various federal agencies within the Department of Homeland Security (the DHS), Department of Health and Human services, and other federal civil agencies, as well as various state and local government agencies. It supplies civil government agencies with mission information systems and associated technical support services. It provides its customers with technical services across service areas, including Digital Services, Enterprise Business Services, Digital Platforms, Cyber, Data Science, and Professional and Citizen Services. It has conducted operations in over 130 locations.

About Jack Henry & Associates

Jack Henry & Associates, Inc. provides technology solutions and payment processing services primarily for financial services organizations in the United States. The company offers information and transaction processing solutions for banks ranging from community to multi-billion dollar institutions under the Jack Henry Banking brand; core data processing solutions for various credit unions under the Symitar brand; and specialized financial performance, imaging and payments processing, information security and risk management, retail delivery, and online and mobile solutions to financial institutions and corporate entities under the ProfitStars brand. It also provides a suite of integrated applications required to process deposit, loan, and general ledger transactions, as well as to maintain centralized customer/member information; and complementary products and services that enable core bank and credit union clients to respond to evolving customer/member demands. The company's Jack Henry Banking business brand offers SilverLake, a robust IBM Power System primarily designed for commercial-focused banks; CIF 20/20, a system for the community bank market; and Core Director, a Windows-based client/server system. Its Symitar business brand provides Episys, a robust IBM Power System primarily designed for credit unions; and CruiseNet, a Windows-based client/server system designed primarily for credit unions. In addition, the company offers electronic payment solutions; purchases and resells hardware systems, including servers, workstations, scanners, and other devices; and provides implementation, training, and support services. Jack Henry & Associates, Inc. was founded in 1976 and is headquartered in Monett, Missouri.

Receive News & Ratings for CSRA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CSRA and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply