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How Does Jack Henry & Associates Compare to Its Peers?

Gabriel Kane

Jack Henry & Associates Reported Strong Results in 1Q16

(Continued from Prior Part)

Jack Henry & Associates and its peers

In this part, we’ll compare Jack Henry & Associates to its peers:

  • The PE (price-to-earnings) ratios of Jack Henry & Associates (JKHY), Fiserv (FISV), Fidelity National Information Services (FIS), and Corelogic (CLGX) are 29.8x, 32.8x, 26.4x, and 32.5x, respectively.

  • The PBV (price-to-book value) ratios of Jack Henry & Associates, Fiserv, Fidelity, Black Knight Financial Services (BKFS), and Corelogic are 6.3x, 7.8x, 2.9x, 2.9x, and 3.4x, respectively.

According to the above findings, the peers outperformed Jack Henry & Associates based on the PE ratio. However, Jack Henry & Associates is way ahead of its peers based on the PBV ratio.

ETFs that invest in Jack Henry & Associates

The PowerShares DWA Technology Momentum Portfolio (PTF) invests 1.7% of its holdings in Jack Henry & Associates. PTF tracks an index of US tech firms selected and weighted by price momentum.

The Huntington EcoLogical Strategy ETF (HECO) invests 1.5% of its holdings in Jack Henry & Associates. HECO is an actively managed fund. It’s comprised of ecologically focused companies. The fund attempts to generate alpha by selecting sectors that management expects to outperform.

The PowerShares S&P MidCap Low Volatility Portfolio (XMLV) invests 1.5% of its holdings in Jack Henry & Associates. XMLV tracks a volatility-weighted index of the 80 least volatile S&P MidCap 400 companies.

Comparing Jack Henry & Associates and its ETFs

Now, let’s compare Jack Henry & Associates and the ETFs that invest in it:

  • The YTD (year-to-date) price movements of Jack Henry & Associates, PTF, HECO, and XMLV are 26.3%, 8.1%, 2.6%, and 6.9%, respectively.
  • The PE ratios of Jack Henry & Associates, PTF, HECO, and XMLV are 29.8x, 67.3x, 20.2x, and 20.2x, respectively.
  • The PBV ratios of Jack Henry & Associates, PTF, HECO, and XMLV are 6.3x, 7.1x, 3.7x, and 2.2x, respectively.

As a result, Jack Henry & Associates outperformed its ETFs based on the price movement, PE ratio, and PBV ratio.

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