JKHY (Jack Henry & Associates Inc) vs S&P 500 Comparison

JKHY

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

Select Stock to Compare

JKHY

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

JKHY

S&P 500

Add Stock

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

Select Stock to Compare

S&P 500

JKHY

ADP

Add Stock

1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

Select Stock to Compare

Jack Henry & Associates Inc
Glance View

Economic Moat

None

Market Cap

12.7B USD

Industry

Technology

In the rolling hills of Missouri, Jack Henry & Associates Inc. found its humble beginnings in 1976, forged by the entrepreneurial spirit of Jack Henry and Jerry Hall. They embarked on a mission to transform the financial landscape with their innovative solutions. Initially, the company focused on providing banks with software tailored to simplify complex back-office operations, a niche that grew exponentially as financial institutions realized the potential of streamlined transactions and data processing. Over the decades, Jack Henry evolved from its roots, securing a reputation as a reliable and robust technology partner for a broad spectrum of financial services organizations, ranging from community banks to credit unions. Today, Jack Henry thrives by offering a comprehensive suite of services that extends beyond mere banking software. The company crafts solutions that facilitate everything from core processing and payment processing to risk management and business intelligence. It generates revenue by licensing software, providing installation services, and offering ongoing support and updates, ensuring systems are always state-of-the-art. Furthermore, Jack Henry capitalizes on the rising demand for cloud-based solutions, which provide banks and credit unions the flexibility to scale services according to their needs. As digital transformation redefines the financial sector, Jack Henry positions itself not merely as a service provider but as a critical collaborator that empowers institutions to adapt and thrive in an ever-evolving economic landscape.

View JKHY Analysis

JKHY Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

	Franklin Covey Co NYSE:FC	35 USD -0.85%
	Mohawk Industries Inc NYSE:MHK	118.28 USD 0.84%
	Ardmore Shipping Corp NYSE:ASC	13.1 USD 4.3%
	ASGN Inc NYSE:ASGN	86.92 USD
	Skyworks Solutions Inc NASDAQ:SWKS	91.22 USD -1.52%
	Weatherford International PLC NASDAQ:WFRD	72.13 USD -3.57%

	Johnson & Johnson NYSE:JNJ	142 USD -0.19%
	Bank of America Corp NYSE:BAC	45.65 USD -1.21%
	Mastercard Inc NYSE:MA	516.4 USD 0.98%
	Salesforce Inc NYSE:CRM	324.135 USD -0.85%
	Abbvie Inc NYSE:ABBV	177.49 USD -0.57%
	Home Depot Inc NYSE:HD	388 USD 0.21%

	Arista Networks Inc NYSE:ANET	113.84 USD -1.45%
	Visa Inc NYSE:V	310.27 USD -0.75%
	Texas Pacific Land Corp NYSE:TPL	1 275.94 USD 1.4%
	KLA Corp NASDAQ:KLAC	681.01 USD -0.76%
	Manhattan Associates Inc NASDAQ:MANH	272.49 USD 1.6%
	Pinduoduo Inc NASDAQ:PDD	99.12 USD -1.2%

	Salesforce Inc NYSE:CRM	324.135 USD -0.85%
	ServiceNow Inc NYSE:NOW	1 049.08 USD -0.48%
	EOG Resources Inc NYSE:EOG	130.81 USD 1.83%
	Copart Inc NASDAQ:CPRT	56.78 USD 0.96%
	Applied Materials Inc NASDAQ:AMAT	173.72 USD -1.85%
	Synopsys Inc NASDAQ:SNPS	493.25 USD -1.74%

	Johnson & Johnson NYSE:JNJ	142 USD -0.19%
	Berkshire Hathaway Inc NYSE:BRK.A	677 925 USD
	Bank of America Corp NYSE:BAC	45.65 USD -1.21%
	Mastercard Inc NYSE:MA	516.4 USD 0.98%
	UnitedHealth Group Inc NYSE:UNH	522.28 USD -0.43%
	Exxon Mobil Corp NYSE:XOM	108.45 USD 1.42%

JKHY

vs

S&P 500

Stocks Performance
JKHY vs S&P 500

Performance Gap
JKHY vs S&P 500

Performance By Year
JKHY vs S&P 500

Competitors Performance
Jack Henry & Associates Inc vs Peers

Jack Henry & Associates Inc
Glance View

Company

Help

Tools

Stocks

US		Visa Inc NYSE:V	Add
US		Mastercard Inc NYSE:MA	Add
US		Automatic Data Processing Inc NASDAQ:ADP	Add
US	F	Fiserv Inc NYSE:FI	Add
US		PayPal Holdings Inc NASDAQ:PYPL	Add
US		Block Inc NYSE:SQ	Add
US		Paychex Inc NASDAQ:PAYX	Add
NL		Adyen NV AEX:ADYEN	Add
US		Fidelity National Information Services Inc NYSE:FIS	Add
ES		Amadeus IT Group SA MAD:AMS	Add

US		Visa Inc NYSE:V	Select
US		Mastercard Inc NYSE:MA	Select
US		Automatic Data Processing Inc NASDAQ:ADP	Select
US	F	Fiserv Inc NYSE:FI	Select
US		PayPal Holdings Inc NASDAQ:PYPL	Select
US		Block Inc NYSE:SQ	Select
US		Paychex Inc NASDAQ:PAYX	Select
NL		Adyen NV AEX:ADYEN	Select
US		Fidelity National Information Services Inc NYSE:FIS	Select
ES		Amadeus IT Group SA MAD:AMS	Select

US	G	GE Vernova LLC NYSE:GEV	Add
NL	N	Nepi Rockcastle NV JSE:NRP	Add
US		Schlumberger NV NYSE:SLB	Add
US	B	Baker Hughes Co NASDAQ:BKR	Add
ID		Amman Mineral Internasional Tbk PT IDX:AMMN	Add
US	R	Reddit Inc NYSE:RDDT	Add
CH	G	Galderma Group AG SIX:GALD	Add
US		Halliburton Co NYSE:HAL	Add
LU		Tenaris SA MIL:TEN	Add
IN		Jio Financial Services Ltd NSE:JIOFIN	Add

JKHY vs S&P 500

Stocks Performance JKHY vs S&P 500

Performance Gap JKHY vs S&P 500

Performance By Year JKHY vs S&P 500

Competitors Performance Jack Henry & Associates Inc vs Peers

Jack Henry & Associates Inc Glance View

Company

Help

Tools

Stocks

JKHY

vs

S&P 500

Stocks Performance
JKHY vs S&P 500

Performance Gap
JKHY vs S&P 500

Performance By Year
JKHY vs S&P 500

Competitors Performance
Jack Henry & Associates Inc vs Peers

Jack Henry & Associates Inc
Glance View