Jack Henry & Associates Inc (JKHY)vsSonos Inc (SONO)
JKHY
Jack Henry & Associates Inc
$149.10
-1.62%
TECHNOLOGY · Cap: $10.86B
SONO
Sonos Inc
$16.85
+3.00%
TECHNOLOGY · Cap: $1.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Jack Henry & Associates Inc generates 71% more annual revenue ($2.54B vs $1.49B). JKHY leads profitability with a 19.8% profit margin vs 3.8%. JKHY trades at a lower P/E of 22.2x. JKHY earns a higher WallStSmart Score of 55/100 (C-).
JKHY
Buy55
out of 100
Grade: C-
SONO
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-39.7%
Fair Value
$118.59
Current Price
$149.10
$30.51 premium
Margin of Safety
-32.1%
Fair Value
$12.49
Current Price
$16.85
$4.36 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Every $100 of equity generates 25 in profit
Strong operational efficiency at 22.5%
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
4.7% revenue growth
Earnings declined 10.4%
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : JKHY
The strongest argument for JKHY centers on Debt/Equity, Altman Z-Score, Return on Equity. Profitability is solid with margins at 19.8% and operating margin at 22.5%.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bear Case : JKHY
The primary concerns for JKHY are PEG Ratio, Revenue Growth, EPS Growth.
Bear Case : SONO
The primary concerns for SONO are P/E Ratio, Market Cap, Return on Equity. Thin 3.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
SONO carries more volatility with a beta of 1.94 — expect wider price swings.
SONO is growing revenue faster at 8.8% — sustainability is the question.
JKHY generates stronger free cash flow (282M), providing more financial flexibility.
Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
JKHY scores higher overall (55/100 vs 48/100), backed by strong 19.8% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Jack Henry & Associates Inc
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
Jack Henry & Associates, Inc. is a technology company and payment processing service for the financial services industry.
Visit Website →Sonos Inc
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.
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