Jack Henry & Associates, Inc. (JKHY) vs Leidos Holdings, Inc. (LDOS)

Jack Henry & Associates, Inc. and Leidos Holdings, Inc. are both Information Technology Services companies. Leidos Holdings, Inc. is the larger, with a market value of $15.6B against $10.4B — 1.5× the size. Leidos Holdings, Inc. trades at the lower P/E: 11.4× against 21.2×. Jack Henry & Associates, Inc. grew revenue faster over the last twelve months: 7.12% against 3.41%. Jack Henry & Associates, Inc. has the higher net margin (19.8% vs 7.80%) and the higher return on invested capital (19.1% vs 12.0%). Both pay a dividend; Leidos Holdings, Inc. yields more (1.30% vs 1.21%). Across the 23 metrics below, Leidos Holdings, Inc. leads on 13 and Jack Henry & Associates, Inc. on 10.

Valuation

Metric JKHY LDOS Information Technology Services median
P/E 21.20 11.39 14.63
P/S 4.17 0.88 1.13
P/B 5.18 2.92 2.10
Price to free cash flow 19.69 7.19 10.11
EV/EBITDA 12.66 8.94 8.56
EV/Sales 4.22 1.18 1.20
Earnings yield 4.72% 8.78% 4.56%
Free cash flow yield 5.08% 13.91% 4.37%

Profitability

Metric JKHY LDOS Information Technology Services median
Gross margin 43.65% 17.80% 31.05%
Operating margin 24.96% 11.51% 3.30%
Net margin 19.76% 7.80% 2.09%
Free cash flow margin 21.20% 12.29% 0.00%
Return on equity 24.04% 27.40% 4.12%
Return on assets 16.25% 9.43% 0.61%
Return on invested capital 19.08% 11.95% 0.57%

Growth

Metric JKHY LDOS Information Technology Services median
Revenue growth (TTM) 7.12% 3.41% 7.12%
EPS growth (last fiscal year) 11.86% 20.82% —
Revenue growth, 5-year CAGR 7.67% 6.91% 7.71%
Net income growth, 5-year CAGR 10.05% 18.18% 0.00%

Health

Metric JKHY LDOS Information Technology Services median
Debt to equity 0.02 1.13 0.45
Current ratio 1.17 1.63 1.66
Net debt to EBITDA 0.03 1.48 0.44

Dividend

Metric JKHY LDOS Information Technology Services median
Dividend yield 1.21% 1.30% 1.21%
Payout ratio 0.40 0.28 0.00

Size

Metric JKHY LDOS Information Technology Services median
Market cap 10.36b 15.56b 1.36b

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