JKHY vs NTRS

For growth investors, Jack Henry & Associates, Inc.

(JKHY) is the stronger pick with 7. 2% revenue growth year-over-year, versus -9. 9% for Northern Trust Corporation (NTRS). Northern Trust Corporation (NTRS) offers the better valuation at 18. 7x trailing P/E (15. 1x forward), making it the more compelling value choice. Analysts rate Jack Henry & Associates, Inc. (JKHY) a "Buy" — based on 22 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Northern Trust Corporation (NTRS) is the cheapest at 18.

7x versus Jack Henry & Associates, Inc. at 22. 9x. On forward P/E, Northern Trust Corporation is actually cheaper at 15. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Northern Trust Corporation wins at 1. 53x versus Jack Henry & Associates, Inc. 's 2. 11x — a reasonable growth-adjusted valuation.

Over the past 5 years, Northern Trust Corporation (NTRS) delivered a total return of +50.

0%, compared to -3. 2% for Jack Henry & Associates, Inc. (JKHY). Over 10 years, the gap is even starker: NTRS returned +173. 7% versus JKHY's +92. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Jack Henry & Associates, Inc.

(JKHY) is the lower-risk stock at 0. 28β versus Northern Trust Corporation's 1. 14β — meaning NTRS is approximately 303% more volatile than JKHY relative to the S&P 500.

By revenue growth (latest reported year), Jack Henry & Associates, Inc.

(JKHY) is pulling ahead at 7. 2% versus -9. 9% for Northern Trust Corporation (NTRS). On earnings-per-share growth, the picture is similar: Jack Henry & Associates, Inc. grew EPS 19. 3% year-over-year, compared to -10. 5% for Northern Trust Corporation. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Jack Henry & Associates, Inc.

(JKHY) is the more profitable company, earning 19. 2% net margin versus 12. 1% for Northern Trust Corporation — meaning it keeps 19. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: JKHY leads at 23. 9% versus 16. 3% for NTRS. At the gross margin level — before operating expenses — NTRS leads at 56. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Northern Trust Corporation (NTRS) is the more undervalued stock at a PEG of 1. 53x versus Jack Henry & Associates, Inc. 's 2. 11x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Northern Trust Corporation (NTRS) trades at 15. 1x forward P/E versus 21. 3x for Jack Henry & Associates, Inc. — 6. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for JKHY: 42. 6% to $203. 75.

All stocks in this comparison pay dividends.

Northern Trust Corporation (NTRS) offers the highest yield at 1. 9%, versus 1. 6% for Jack Henry & Associates, Inc. (JKHY).

For long-horizon retirement investors, Jack Henry & Associates, Inc.

(JKHY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 28), 1. 6% yield). Both have compounded well over 10 years (JKHY: +92. 3%, NTRS: +173. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (JKHY (Technology) and NTRS (Financial Services)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.