EPAM Systems, Inc. (EPAM) vs Jack Henry & Associates, Inc. (JKHY)

EPAM Systems, Inc. and Jack Henry & Associates, Inc. are both Information Technology Services companies. Jack Henry & Associates, Inc. is the larger, with a market value of $12.6B against $8.6B — 1.5× the size. EPAM Systems, Inc. trades at the lower P/E: 19.8× against 24.9×. Jack Henry & Associates, Inc. grew revenue faster over the last twelve months: 7.53% against 6.62%. Jack Henry & Associates, Inc. has the higher net margin (20.0% vs 7.53%) and the higher return on invested capital (19.1% vs 14.0%). Across the 22 metrics below, EPAM Systems, Inc. leads on 13 and Jack Henry & Associates, Inc. on 9.

Valuation

Metric EPAM JKHY Information Technology Services median
P/E 19.82 24.86 16.12
P/S 1.45 4.79 1.14
P/B 2.28 6.07 1.73
Price to free cash flow 17.39 22.52 13.77
EV/EBITDA 10.04 14.86 9.89
EV/Sales 1.28 4.84 1.34
Earnings yield 5.04% 4.02% 3.10%
Free cash flow yield 5.75% 4.44% 0.06%

Profitability

Metric EPAM JKHY Information Technology Services median
Gross margin 29.86% 43.83% 30.04%
Operating margin 10.52% 25.30% 1.81%
Net margin 7.53% 19.96% 0.79%
Free cash flow margin 8.33% 21.25% 0.00%
Return on equity 11.61% 0.00% 0.00%
Return on assets 8.93% 16.63% 0.00%
Return on invested capital 13.99% 19.05% 0.00%

Growth

Metric EPAM JKHY Information Technology Services median
Revenue growth (TTM) 6.62% 7.53% 4.85%
EPS growth (last fiscal year) (14.29%) 11.86% 3.57%
Revenue growth, 5-year CAGR 15.46% 7.67% 6.93%
Net income growth, 5-year CAGR 2.91% 10.05% 0.00%

Health

Metric EPAM JKHY Information Technology Services median
Debt to equity 0.01 0.04 0.31
Current ratio 2.76 1.50 1.69
Net debt to EBITDA (1.97) 0.03 0.55

Dividend

Metric EPAM JKHY Information Technology Services median
Dividend yield — 1.39% 1.97%
Payout ratio — 0.33 0.29

Size

Metric EPAM JKHY Information Technology Services median
Market cap 8.55b 12.64b 1.02b

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