Wipro (NYSE:WIT) vs. Jack Henry & Associates (NASDAQ:JKHY) Head-To-Head Contrast

Wipro (NYSE:WIT – Get Free Report) and Jack Henry & Associates (NASDAQ:JKHY – Get Free Report) are both large-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Insider and Institutional Ownership

2.4% of Wipro shares are owned by institutional investors. Comparatively, 92.5% of Jack Henry & Associates shares are owned by institutional investors. 1.0% of Wipro shares are owned by company insiders. Comparatively, 0.6% of Jack Henry & Associates shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

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Profitability

This table compares Wipro and Jack Henry & Associates’ net margins, return on equity and return on assets.

Dividends

Wipro pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Jack Henry & Associates pays an annual dividend of $2.08 per share and has a dividend yield of 1.4%. Wipro pays out 3.8% of its earnings in the form of a dividend. Jack Henry & Associates pays out 41.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Jack Henry & Associates has increased its dividend for 33 consecutive years. Jack Henry & Associates is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Wipro has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Jack Henry & Associates has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Valuation & Earnings

This table compares Wipro and Jack Henry & Associates’ gross revenue, earnings per share (EPS) and valuation.

Wipro has higher revenue and earnings than Jack Henry & Associates. Wipro 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Wipro and Jack Henry & Associates, as provided by MarketBeat.

Wipro currently has a consensus price target of $4.30, suggesting a potential downside of 8.90%. Jack Henry & Associates has a consensus price target of $170.54, suggesting a potential upside of 15.95%. Given Jack Henry & Associates’ stronger consensus rating and higher possible upside, analysts plainly believe Jack Henry & Associates is more favorable than Wipro.

Summary

Jack Henry & Associates beats Wipro on 12 of the 17 factors compared between the two stocks.

About Wipro

(Get Free Report)

Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through three segments: IT Services, IT Products, and India State Run Enterprise Services (ISRE). The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises. It serves customers in various industry sectors, such as healthcare and medical devices, consumer goods and life sciences, retail, transportation and services, communications, media and information services, technology products and platforms, banking, financial services and insurance, manufacturing, hi-tech, energy, and utilities. The IT Products segment provides a range of third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the Indian market, which comprise the government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. The ISRE segment offers IT services to entities and departments owned or controlled by the Government of India and/or various Indian State Governments. It also provides cybersecurity consulting services. The company has a partnership with ServiceNow, Inc. to develop Wipro CyberTransform – Intelligent ServiceNow Risk and Security Solutions. The company was incorporated in 1945 and is based in Bengaluru, India.

About Jack Henry & Associates

(Get Free Report)

Jack Henry & Associates, Inc., a financial technology company that connects people and financial institutions through technology solutions and payment processing services that reduce the barriers to financial health. It operates through four segments: Core, Payments, Complementary, and Corporate and Other. The company offers information and transaction processing solutions for banks ranging from community to multi-billion-dollar asset institutions; core data processing solutions for various credit unions; and specialized financial performance, imaging and payments processing, information security and risk management, retail delivery, and online and mobile solutions to financial services organizations and corporate entities. It also provides a suite of integrated applications required to process deposit, loan, and general ledger transactions, as well as to maintain centralized customer/member information; and complementary products and services that enable core bank and credit union clients to respond to evolving customer/member demands. In addition, the company's core banking platform offerings include SilverLake system, a robust system primarily designed for commercial-focused banks; CIF 20/20, a parameter-driven, easy-to-use system for banks; and Core Director, a cost-efficient system with point-and-click operation, as well as core credit union platform under the Symitar name. Further, it provides digital products and services and electronic payment solutions; purchases and resells hardware systems, including servers, workstations, scanners, and other devices; implementation, training, and support services; and software licensing and related services, professional services, and data centers. Jack Henry & Associates, Inc. was founded in 1976 and is headquartered in Monett, Missouri.

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