Jack Henry & Associates (NASDAQ:JKHY – Get Free Report) and Stem (NYSE:STEM – Get Free Report) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.
Profitability
This table compares Jack Henry & Associates and Stem’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Jack Henry & Associates | 18.50% | 22.07% | 14.68% |
| Stem | -14.04% | N/A | -21.90% |
Analyst Ratings
This is a summary of current recommendations for Jack Henry & Associates and Stem, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Jack Henry & Associates | 1 | 8 | 2 | 0 | 2.09 |
| Stem | 0 | 7 | 0 | 0 | 2.00 |
Volatility & Risk
Jack Henry & Associates has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Stem has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.
Valuation & Earnings
This table compares Jack Henry & Associates and Stem”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Jack Henry & Associates | $2.22 billion | 5.27 | $381.82 million | $5.87 | 27.32 |
| Stem | $144.58 million | 0.86 | -$854.01 million | ($28.99) | -0.51 |
Jack Henry & Associates has higher revenue and earnings than Stem. Stem 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.
Insider & Institutional Ownership
98.8% of Jack Henry & Associates shares are owned by institutional investors. Comparatively, 61.6% of Stem shares are owned by institutional investors. 1.4% of Jack Henry & Associates shares are owned by company insiders. Comparatively, 10.2% of Stem shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Jack Henry & Associates beats Stem on 12 of the 14 factors compared between the two stocks.
About Jack Henry & Associates
Jack Henry & Associates, Inc. is a financial technology company, which engages in the provision of technology solutions and payment processing services. It operates through the following segments: Core, Payments, Complementary, and Corporate and Other. The Core segment provides core information processing platforms to banks and credit unions which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized customer and member information. The Payments segment includes secure payment processing tools and services including ATM, debit, and credit card processing services, online and mobile bill pay solutions, ACH origination and remote deposit capture processing, and risk management products and services. The Complementary segment focuses on additional software, hosted processing platforms, and services including call center support, network security management, consulting, and monitoring. The Corporate and Other segment offers hardware and other products. The company was founded by Jerry D. Hall and John W. Henry in 1976 and is headquartered in Monett, MO.
About Stem
Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.
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