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 ($12.6B and $12.5B). Gartner, Inc. trades at the lower P/E: 14.1× against 25.9×. Jack Henry & Associates, Inc. grew revenue faster over the last twelve months: 7.53% against −0.24%. Jack Henry & Associates, Inc. has the higher net margin (20.0% vs 14.8%) and the lower return on invested capital (19.1% vs 62.4%). 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 14.08 25.89 17.60
P/S 1.96 4.99 1.16
P/B n/m 6.32 1.93
Price to free cash flow 9.74 23.46 13.52
EV/EBITDA 9.32 15.47 9.79
EV/Sales 2.17 5.04 1.35
Earnings yield 7.10% 3.86% 2.99%
Free cash flow yield 10.27% 4.26% 0.07%

Profitability

Metric IT JKHY Information Technology Services median
Gross margin 70.18% 43.83% 30.04%
Operating margin 20.33% 25.30% 1.67%
Net margin 14.81% 19.96% 0.79%
Free cash flow margin 20.09% 21.25% 0.00%
Return on equity 365.76% 0.00% 0.00%
Return on assets 13.26% 16.63% 0.00%
Return on invested capital 62.36% 19.05% 0.00%

Growth

Metric IT JKHY Information Technology Services median
Revenue growth (TTM) (0.24%) 7.53% 4.85%
EPS growth (last fiscal year) (39.69%) 11.86% 3.57%
Revenue growth, 5-year CAGR 9.65% 7.67% 6.93%
Net income growth, 5-year CAGR 22.28% 10.05% 0.00%

Health

Metric IT JKHY Information Technology Services median
Debt to equity (85.98) 0.04 0.31
Current ratio 0.91 1.50 1.70
Net debt to EBITDA 0.91 0.03 0.55

Dividend

Metric IT JKHY Information Technology Services median
Dividend yield — 1.34% 1.95%
Payout ratio — 0.33 0.29

Size

Metric IT JKHY Information Technology Services median
Market cap 12.49b 12.64b 1.11b

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