Analyzing Jack Henry & Associates (NASDAQ:JKHY) and Samsara (NYSE:IOT)

Jack Henry & Associates (NASDAQ:JKHY) and Samsara (NYSE:IOT) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jack Henry & Associates	$2.08 billion	5.79	$366.65 million	$5.11	32.30
Samsara	$937.39 million	17.87	-$286.73 million	($0.53)	-57.42

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jack Henry & Associates	17.26%	22.67%	13.62%
Samsara	-30.59%	-22.90%	-12.81%

Risk & Volatility

Jack Henry & Associates has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Samsara has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.

Institutional & Insider Ownership

98.8% of Jack Henry & Associates shares are owned by institutional investors. Comparatively, 89.4% of Samsara shares are owned by institutional investors. 0.6% of Jack Henry & Associates shares are owned by company insiders. Comparatively, 66.1% of Samsara shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Jack Henry & Associates and Samsara, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jack Henry & Associates	1	7	6	0	2.36
Samsara	0	5	4	0	2.44

Jack Henry & Associates presently has a consensus price target of $171.58, suggesting a potential upside of 3.96%. Samsara has a consensus price target of $31.56, suggesting a potential upside of 3.70%. Given Jack Henry & Associates’ higher probable upside, equities analysts plainly believe Jack Henry & Associates is more favorable than Samsara.

Summary

Jack Henry & Associates beats Samsara on 10 of the 14 factors compared between the two stocks.

About Jack Henry & Associates

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.

About Samsara

Samsara Inc. provides solutions that connects physical operations data to its connected operations cloud in the United States and internationally. The company's Connected Operations Cloud includes Data Platform, which ingests, aggregates, and enriches data from its IoT devices and has embedded capabilities for AI, workflows and analytics, alerts, API connections, and data security and privacy. Its applications include video-based safety that enables customers to build a safety program and protect their teams with AI-enabled video; vehicle telematics which provides visibility into real-time vehicle location and diagnostics with GPS tracking, routing and dispatch, fuel efficiency management, electric vehicle usage and charge planning, preventative maintenance, and insights to manage fuel and energy costs; and mobile apps and workflows that improves productivity for frontline workers and enables regulatory compliance for workers to see upcoming jobs, capture electronic documents, perform maintenance inspections, maintain compliance logs, and message with back-office administration. The company also provides equipment monitoring which offers visibility and management of unpowered and powered assets, ranging from generators and compressors to heavy construction equipment and trailers to improve operating efficiency, prevent unplanned downtime, and avoid critical safety and compliance issues; and site visibility that provides remote visibility into sites to improve onsite security, safety, and incident response times. It serves transportation, wholesale and retail trade, construction, field services, logistics, utilities and energy, healthcare and education, manufacturing, food and beverage, and other industries, as well as government. Samsara Inc. was incorporated in 2015 and is headquartered in San Francisco, California.