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CTSH vs. JKHY: A Head-to-Head Stock Comparison

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Here’s a clear look at CTSH and JKHY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolCTSHJKHY
Company NameCognizant Technology Solutions CorporationJack Henry & Associates, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyFinancials
GICS IndustryIT ServicesFinancial Services
Market Capitalization37.11 billion USD12.41 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateJune 19, 1998November 20, 1985
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CTSH and JKHY by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

CTSH vs. JKHY: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolCTSHJKHY
5-Day Price Return-0.37%2.29%
13-Week Price Return1.79%2.76%
26-Week Price Return-11.30%-8.96%
52-Week Price Return-5.20%-2.25%
Month-to-Date Return-0.73%12.64%
Year-to-Date Return-5.92%-4.30%
10-Day Avg. Volume4.17M0.86M
3-Month Avg. Volume4.37M0.93M
3-Month Volatility24.59%20.95%
Beta0.960.67

Profitability

Return on Equity (TTM)

CTSH

14.31%

IT Services Industry

Max
37.08%
Q3
19.28%
Median
14.70%
Q1
6.70%
Min
-8.16%

CTSH’s Return on Equity of 14.31% is on par with the norm for the IT Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

JKHY

23.11%

Financial Services Industry

Max
34.42%
Q3
16.76%
Median
9.18%
Q1
3.90%
Min
-10.16%

In the upper quartile for the Financial Services industry, JKHY’s Return on Equity of 23.11% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

CTSH vs. JKHY: A comparison of their Return on Equity (TTM) against their respective IT Services and Financial Services industry benchmarks.

Net Profit Margin (TTM)

CTSH

10.20%

IT Services Industry

Max
17.01%
Q3
11.02%
Median
6.91%
Q1
3.07%
Min
-5.13%

CTSH’s Net Profit Margin of 10.20% is aligned with the median group of its peers in the IT Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

JKHY

19.86%

Financial Services Industry

Max
52.16%
Q3
25.33%
Median
13.11%
Q1
7.04%
Min
-8.99%

JKHY’s Net Profit Margin of 19.86% is aligned with the median group of its peers in the Financial Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

CTSH vs. JKHY: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Financial Services industry benchmarks.

Operating Profit Margin (TTM)

CTSH

15.76%

IT Services Industry

Max
23.01%
Q3
15.32%
Median
9.57%
Q1
4.91%
Min
-9.58%

An Operating Profit Margin of 15.76% places CTSH in the upper quartile for the IT Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

JKHY

24.87%

Financial Services Industry

Max
81.07%
Q3
40.32%
Median
19.93%
Q1
10.20%
Min
-34.40%

JKHY’s Operating Profit Margin of 24.87% is around the midpoint for the Financial Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

CTSH vs. JKHY: A comparison of their Operating Profit Margin (TTM) against their respective IT Services and Financial Services industry benchmarks.

Profitability at a Glance

SymbolCTSHJKHY
Return on Equity (TTM)14.31%23.11%
Return on Assets (TTM)10.61%16.10%
Net Profit Margin (TTM)10.20%19.86%
Operating Profit Margin (TTM)15.76%24.87%
Gross Profit Margin (TTM)34.06%43.54%

Financial Strength

Current Ratio (MRQ)

CTSH

2.36

IT Services Industry

Max
3.02
Q3
1.91
Median
1.36
Q1
1.02
Min
0.49

CTSH’s Current Ratio of 2.36 is in the upper quartile for the IT Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

JKHY

1.49

Financial Services Industry

Max
4.36
Q3
2.26
Median
1.33
Q1
0.86
Min
0.01

For the Financial Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

CTSH vs. JKHY: A comparison of their Current Ratio (MRQ) against their respective IT Services and Financial Services industry benchmarks.

Debt-to-Equity Ratio (MRQ)

CTSH

0.04

IT Services Industry

Max
2.55
Q3
1.30
Median
0.55
Q1
0.14
Min
0.00

Falling into the lower quartile for the IT Services industry, CTSH’s Debt-to-Equity Ratio of 0.04 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

JKHY

0.01

Financial Services Industry

Max
5.07
Q3
2.14
Median
0.55
Q1
0.11
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Financial Services industry.

CTSH vs. JKHY: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Financial Services industry benchmarks.

Interest Coverage Ratio (TTM)

CTSH

100.81

IT Services Industry

Max
129.00
Q3
56.00
Median
11.69
Q1
1.68
Min
-28.15

CTSH’s Interest Coverage Ratio of 100.81 is in the upper quartile for the IT Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

JKHY

78.80

Financial Services Industry

Max
140.54
Q3
57.67
Median
6.72
Q1
1.93
Min
-33.27

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial Services industry.

CTSH vs. JKHY: A comparison of their Interest Coverage Ratio (TTM) against their respective IT Services and Financial Services industry benchmarks.

Financial Strength at a Glance

SymbolCTSHJKHY
Current Ratio (MRQ)2.361.49
Quick Ratio (MRQ)2.361.09
Debt-to-Equity Ratio (MRQ)0.040.01
Interest Coverage Ratio (TTM)100.8178.80

Growth

Revenue Growth

CTSH vs. JKHY: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

CTSH vs. JKHY: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

CTSH

1.65%

IT Services Industry

Max
4.66%
Q3
2.02%
Median
0.66%
Q1
0.00%
Min
0.00%

CTSH’s Dividend Yield of 1.65% is consistent with its peers in the IT Services industry, providing a dividend return that is standard for its sector.

JKHY

1.35%

Financial Services Industry

Max
7.52%
Q3
3.60%
Median
1.75%
Q1
0.00%
Min
0.00%

JKHY’s Dividend Yield of 1.35% is consistent with its peers in the Financial Services industry, providing a dividend return that is standard for its sector.

CTSH vs. JKHY: A comparison of their Dividend Yield (TTM) against their respective IT Services and Financial Services industry benchmarks.

Dividend Payout Ratio (TTM)

CTSH

28.62%

IT Services Industry

Max
93.78%
Q3
63.22%
Median
24.64%
Q1
0.00%
Min
0.00%

CTSH’s Dividend Payout Ratio of 28.62% is within the typical range for the IT Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

JKHY

34.69%

Financial Services Industry

Max
132.10%
Q3
64.32%
Median
17.51%
Q1
0.00%
Min
0.00%

JKHY’s Dividend Payout Ratio of 34.69% is within the typical range for the Financial Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

CTSH vs. JKHY: A comparison of their Dividend Payout Ratio (TTM) against their respective IT Services and Financial Services industry benchmarks.

Dividend at a Glance

SymbolCTSHJKHY
Dividend Yield (TTM)1.65%1.35%
Dividend Payout Ratio (TTM)28.62%34.69%

Valuation

Price-to-Earnings Ratio (TTM)

CTSH

17.34

IT Services Industry

Max
45.03
Q3
30.25
Median
21.01
Q1
16.50
Min
0.00

CTSH’s P/E Ratio of 17.34 is within the middle range for the IT Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

JKHY

25.70

Financial Services Industry

Max
46.13
Q3
28.79
Median
13.18
Q1
9.14
Min
0.47

JKHY’s P/E Ratio of 25.70 is within the middle range for the Financial Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

CTSH vs. JKHY: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Financial Services industry benchmarks.

Price-to-Sales Ratio (TTM)

CTSH

1.77

IT Services Industry

Max
5.24
Q3
4.01
Median
2.18
Q1
1.08
Min
0.00

CTSH’s P/S Ratio of 1.77 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

JKHY

5.11

Financial Services Industry

Max
9.71
Q3
4.81
Median
2.49
Q1
1.25
Min
0.04

The P/S Ratio is often not a primary valuation tool in the Financial Services industry.

CTSH vs. JKHY: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Financial Services industry benchmarks.

Price-to-Book Ratio (MRQ)

CTSH

2.20

IT Services Industry

Max
9.42
Q3
5.79
Median
3.70
Q1
2.30
Min
0.79

CTSH’s P/B Ratio of 2.20 is in the lower quartile for the IT Services industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

JKHY

4.98

Financial Services Industry

Max
7.21
Q3
3.51
Median
1.52
Q1
0.88
Min
0.08

JKHY’s P/B Ratio of 4.98 is in the upper tier for the Financial Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

CTSH vs. JKHY: A comparison of their Price-to-Book Ratio (MRQ) against their respective IT Services and Financial Services industry benchmarks.

Valuation at a Glance

SymbolCTSHJKHY
Price-to-Earnings Ratio (TTM)17.3425.70
Price-to-Sales Ratio (TTM)1.775.11
Price-to-Book Ratio (MRQ)2.204.98
Price-to-Free Cash Flow Ratio (TTM)13.9229.89