Critical Comparison: CLPS Incorporation (NASDAQ:CLPS) and Jack Henry & Associates (NASDAQ:JKHY)

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

Analyst Recommendations

This is a breakdown of current recommendations for Jack Henry & Associates and CLPS Incorporation, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jack Henry & Associates	0	9	2	0	2.18
CLPS Incorporation	1	0	0	0	1.00

Jack Henry & Associates presently has a consensus target price of $172.25, indicating a potential upside of 15.65%. Given Jack Henry & Associates’ stronger consensus rating and higher probable upside, research analysts plainly believe Jack Henry & Associates is more favorable than CLPS Incorporation.

Profitability

This table compares Jack Henry & Associates and CLPS Incorporation’s 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%
CLPS Incorporation	N/A	N/A	N/A

Earnings and Valuation

This table compares Jack Henry & Associates and CLPS Incorporation”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	4.56	$455.75 million	$6.24	23.87
CLPS Incorporation	$164.48 million	0.16	-$7.05 million	N/A	N/A

Jack Henry & Associates has higher revenue and earnings than CLPS Incorporation.

Institutional and Insider Ownership

98.8% of Jack Henry & Associates shares are owned by institutional investors. Comparatively, 0.2% of CLPS Incorporation shares are owned by institutional investors. 0.6% of Jack Henry & Associates shares are owned by company insiders. Comparatively, 58.7% of CLPS Incorporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Jack Henry & Associates has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, CLPS Incorporation has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Summary

Jack Henry & Associates beats CLPS Incorporation on 11 of the 12 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 CLPS Incorporation

CLPS Incorporation provides information technology (IT), consulting, and solutions to institutions operating in banking, insurance, and financial sectors in the People's Republic of China and internationally. It offers IT consulting services in credit card business areas, such as credit card application, account setup, authorization and activation, settlement, collection, promotion, point system, anti-fraud, statement, reporting, and risk management. The company also provides banking services, including business analysis, system design, development, testing, system maintenance, and operation support; and services in loans, deposit, general ledger, wealth management, debit card, anti-money-laundering, statement and reporting, and risk management, as well as architecture consulting services for banking systems, and online and mobile banking. In addition, it offers solutions in the field of wealth management; e-commerce solutions in online platforms, cross-border e-commerce, logistics, and back-end technology, such as big data analysis and intelligent decision-making; and driving, automatic control, and other AI-driven technology solutions for the automotive industry. Further, the company provides IT services to its clients in the banking, wealth management, e-commerce, and automotive industries; and software project development, maintenance, and testing services. Additionally, it offers CLPS Virtual Banking platform, a training platform for IT talents; recruitment and headhunting; and fee-for-service training services, as well as sells product and third-party software. The company was founded in 2005 and is headquartered in Kwun Tong, Hong Kong.