Gartner, Inc. (IT) vs Jack Henry & Associates, Inc. (JKHY)

Gartner, Inc. and Jack Henry & Associates, Inc. are both Information Technology Services companies. Gartner, Inc. and Jack Henry & Associates, Inc. are of similar size ($11.3B and $10.4B). Gartner, Inc. trades at the lower P/E: 16.8× against 21.2×. Jack Henry & Associates, Inc. grew revenue faster over the last twelve months: 7.12% against 0.68%. Jack Henry & Associates, Inc. has the higher net margin (19.8% vs 12.0%) and the lower return on invested capital (19.1% vs 52.7%). Across the 21 metrics below, Gartner, Inc. leads on 13 and Jack Henry & Associates, Inc. on 8.

Valuation

Metric IT JKHY Information Technology Services median
P/E 16.84 21.20 14.63
P/S 1.93 4.17 1.13
P/B n/m 5.18 2.10
Price to free cash flow 9.69 19.69 10.11
EV/EBITDA 9.59 12.66 8.56
EV/Sales 2.16 4.22 1.20
Earnings yield 5.94% 4.72% 4.56%
Free cash flow yield 10.32% 5.08% 4.37%

Profitability

Metric IT JKHY Information Technology Services median
Gross margin 69.63% 43.65% 31.05%
Operating margin 17.25% 24.96% 3.30%
Net margin 12.00% 19.76% 2.09%
Free cash flow margin 19.94% 21.20% 0.00%
Return on equity 113.58% 24.04% 4.12%
Return on assets 9.99% 16.25% 0.61%
Return on invested capital 52.67% 19.08% 0.57%

Growth

Metric IT JKHY Information Technology Services median
Revenue growth (TTM) 0.68% 7.12% 7.12%
EPS growth (last fiscal year) (39.69%) 11.86% —
Revenue growth, 5-year CAGR 9.65% 7.67% 7.71%
Net income growth, 5-year CAGR 22.28% 10.05% 0.00%

Health

Metric IT JKHY Information Technology Services median
Debt to equity (17.80) 0.02 0.45
Current ratio 0.88 1.17 1.66
Net debt to EBITDA 0.91 0.03 0.44

Dividend

Metric IT JKHY Information Technology Services median
Dividend yield — 1.21% 1.21%
Payout ratio 0.00 0.40 0.00

Size

Metric IT JKHY Information Technology Services median
Market cap 11.32b 10.36b 1.36b

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