Jack Henry & Associates (NASDAQ:JKHY) and IonQ (NYSE:IONQ) Head-To-Head Analysis

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

Risk and Volatility

Jack Henry & Associates has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, IonQ has a beta of 2.43, meaning that its stock price is 143% more volatile than the S&P 500.

Insider and Institutional Ownership

98.8% of Jack Henry & Associates shares are owned by institutional investors. Comparatively, 41.4% of IonQ shares are owned by institutional investors. 1.4% of Jack Henry & Associates shares are owned by company insiders. Comparatively, 11.6% of IonQ shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jack Henry & Associates	17.79%	21.81%	13.94%
IonQ	-457.85%	-36.82%	-32.48%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Jack Henry & Associates and IonQ, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jack Henry & Associates	1	9	2	0	2.08
IonQ	0	1	4	0	2.80

Jack Henry & Associates currently has a consensus target price of $186.80, indicating a potential upside of 7.88%. IonQ has a consensus target price of $33.00, indicating a potential downside of 15.29%. Given Jack Henry & Associates’ higher probable upside, equities analysts clearly believe Jack Henry & Associates is more favorable than IonQ.

Earnings & Valuation

This table compares Jack Henry & Associates and IonQ”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jack Henry & Associates	$2.25 billion	5.63	$381.82 million	$5.46	31.71
IonQ	$22.04 million	382.47	-$157.77 million	($0.81)	-48.09

Jack Henry & Associates has higher revenue and earnings than IonQ. IonQ 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 IonQ on 9 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 IonQ

IonQ, Inc. engages in the development of general-purpose quantum computing systems in the United States. It sells access to quantum computers of various qubit capacities. The company makes access to its quantum computers through cloud platforms, such as Amazon Web Services (AWS) Amazon Braket, Microsoft’s Azure Quantum, and Google’s Cloud Marketplace, as well as through its cloud service. It also provides contracts associated with the design, development, and construction of specialized quantum computing hardware systems; maintenance and support services; and consulting services related to co-developing algorithms on quantum computing systems. The company was founded in 2015 and is headquartered in College Park, Maryland.