Critical Comparison: Jack Henry & Associates (NASDAQ:JKHY) versus ScanTech AI Systems (NASDAQ:STAI)

Jack Henry & Associates (NASDAQ:JKHY) and ScanTech AI Systems (NASDAQ:STAI) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings for Jack Henry & Associates and ScanTech AI Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jack Henry & Associates	0	9	2	0	2.18
ScanTech AI Systems	1	0	0	0	1.00

Jack Henry & Associates currently has a consensus price target of $174.00, suggesting a potential upside of 11.66%. Given Jack Henry & Associates’ stronger consensus rating and higher probable upside, analysts plainly believe Jack Henry & Associates is more favorable than ScanTech AI Systems.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jack Henry & Associates	19.19%	22.60%	15.43%
ScanTech AI Systems	N/A	N/A	N/A

Institutional and Insider Ownership

98.8% of Jack Henry & Associates shares are held by institutional investors. Comparatively, 74.0% of ScanTech AI Systems shares are held by institutional investors. 0.6% of Jack Henry & Associates shares are held by company insiders. Comparatively, 22.8% of ScanTech AI Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Jack Henry & Associates has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, ScanTech AI Systems has a beta of -0.88, meaning that its share price is 188% less volatile than the S&P 500.

Earnings & Valuation

This table compares Jack Henry & Associates and ScanTech AI Systems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jack Henry & Associates	$2.38 billion	4.77	$455.75 million	$6.24	24.97
ScanTech AI Systems	$540,000.00	70.63	-$23.07 million	($0.37)	-1.60

Jack Henry & Associates has higher revenue and earnings than ScanTech AI Systems. ScanTech AI Systems 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.

Summary

Jack Henry & Associates beats ScanTech AI Systems 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 ScanTech AI Systems

Scantech AI Systems, Inc. engages in the innovation, emerging technology, and machine learning expertise. ScanTech specializes in developing advanced screening technology that provides the most accurate and fastest detection of prohibited materials. The company was founded on September 5, 2023 and is headquartered in Buford, GA.