Jack Henry & Associates, Inc. (JKHY) and BigBear.ai Holdings, Inc. (BBAI) both operate in the dynamic Information Technology Services sector, yet they serve distinct niches—JKHY focuses on financial technology solutions, while BBAI leads in artificial intelligence and machine learning for decision support. Comparing these companies highlights contrasting innovation strategies and market potential. In this article, I will help you identify which company presents the most compelling opportunity for your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between Jack Henry & Associates, Inc. and BigBear.ai Holdings, Inc. by providing an overview of these two companies and their main differences.
Jack Henry & Associates, Inc. Overview
Jack Henry & Associates, Inc. delivers technology solutions and payment processing services primarily to U.S. financial services organizations. Founded in 1976 and headquartered in Monett, Missouri, it operates through segments including Core, Payments, Complementary, and Corporate. The company supports banks and credit unions with core data processing, financial performance tools, and electronic payment solutions, serving a broad range of institutions from community banks to large credit unions.
BigBear.ai Holdings, Inc. Overview
BigBear.ai Holdings, Inc. specializes in artificial intelligence and machine learning for decision support, operating two main segments: Cyber & Engineering and Analytics. Headquartered in Columbia, Maryland, and established in 2021, it offers consulting services focused on cloud engineering, cybersecurity, and big data analytics. Its solutions help clients synthesize data to enable real-time decision-making, targeting technology-driven enterprises requiring advanced analytical capabilities.
Key similarities and differences
Both companies operate in the technology sector with a focus on information services. Jack Henry & Associates primarily targets financial institutions with core processing and payment solutions, emphasizing stable, long-term client relationships. In contrast, BigBear.ai focuses on AI-driven analytics and cybersecurity consulting across various industries, reflecting a more specialized and emerging technology approach. Their business models differ in customer focus and technology application scale.
Income Statement Comparison
This table compares key income statement metrics for Jack Henry & Associates, Inc. and BigBear.ai Holdings, Inc. for their most recent fiscal years.
| Metric | Jack Henry & Associates, Inc. (JKHY) | BigBear.ai Holdings, Inc. (BBAI) |
|---|---|---|
| Market Cap | 14.0B | 2.3B |
| Revenue | 2.38B | 158M |
| EBITDA | 801M | -258M |
| EBIT | 596M | -270M |
| Net Income | 456M | -296M |
| EPS | 6.24 | -1.27 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Jack Henry & Associates, Inc.
Jack Henry & Associates showed consistent revenue growth from 1.76B in 2021 to 2.38B in 2025, with net income rising from 311M to 456M. Margins remained stable and favorable, with a gross margin of 42.71% and net margin at 19.19% in 2025. The latest year saw a 7.21% revenue increase and an 11.34% net margin improvement, indicating healthy profitability.
BigBear.ai Holdings, Inc.
BigBear.ai’s revenue increased from 91M in 2020 to 158M in 2024, yet net income remained negative, widening from -8M to -296M. Gross margin held at a favorable 28.58%, but EBIT and net margins were deeply unfavorable, at -170.73% and -186.78%, respectively, in 2024. Recent growth slowed, with declining profitability and worsening margins, signaling operational challenges.
Which one has the stronger fundamentals?
Jack Henry & Associates displays stronger fundamentals, marked by sustained revenue and net income growth, stable and favorable margins, and positive earnings progression. Conversely, BigBear.ai struggles with persistent losses, unfavorable margins, and deteriorating earnings despite revenue gains. The contrast highlights Jack Henry’s more robust financial health and operational efficiency.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Jack Henry & Associates, Inc. (JKHY) and BigBear.ai Holdings, Inc. (BBAI) based on the most recent fiscal year data available.
| Ratios | Jack Henry & Associates, Inc. (JKHY) | BigBear.ai Holdings, Inc. (BBAI) |
|---|---|---|
| ROE | 21.4% | 79.6% |
| ROIC | 17.6% | -93.4% |
| P/E | 28.9 | -3.52 |
| P/B | 6.18 | -279.9 |
| Current Ratio | 1.27 | 0.46 |
| Quick Ratio | 1.27 | 0.46 |
| D/E (Debt-to-Equity) | 0 | -39.4 |
| Debt-to-Assets | 0 | 42.6% |
| Interest Coverage | 54.5 | -5.20 |
| Asset Turnover | 0.78 | 0.46 |
| Fixed Asset Turnover | 10.75 | 14.6 |
| Payout Ratio | 36.1% | 0 |
| Dividend Yield | 1.25% | 0 |
Interpretation of the Ratios
Jack Henry & Associates, Inc.
Jack Henry & Associates exhibits mostly favorable financial ratios, with strong net margin at 19.19% and return on equity of 21.39%, though its price-to-earnings and price-to-book ratios are less attractive. The company maintains a stable current ratio of 1.27 and excellent interest coverage of 57.14. It pays dividends with a moderate yield of 1.25%, supported by consistent free cash flow, indicating a sustainable shareholder return approach.
BigBear.ai Holdings, Inc.
BigBear.ai’s ratios present significant challenges, including a heavily negative net margin at -186.78% and a negative return on invested capital, reflecting operational struggles. Its liquidity ratios are weak, with a current ratio of only 0.46, and interest coverage is negative. The company does not pay dividends, likely due to ongoing reinvestment in growth and R&D, consistent with its high beta and volatile earnings profile.
Which one has the best ratios?
Jack Henry & Associates demonstrates a more favorable financial profile with solid profitability, liquidity, and dividend support, despite some valuation concerns. In contrast, BigBear.ai shows unfavorable operating and liquidity ratios, reflecting higher risk and operational difficulties. Thus, Jack Henry’s ratios overall suggest a stronger financial position compared to BigBear.ai’s.
Strategic Positioning
This section compares the strategic positioning of Jack Henry & Associates, Inc. and BigBear.ai Holdings, Inc., including Market position, Key segments, and disruption:
Jack Henry & Associates, Inc.
- Large market cap (~14B USD) with steady competitive presence, low beta (0.73) indicates lower volatility.
- Diverse segments: Core banking, Payments, Complementary solutions driving revenue growth.
- Operates in established financial tech with moderate exposure to evolving digital payment trends.
BigBear.ai Holdings, Inc.
- Smaller market cap (~2.3B USD), high beta (3.21) suggests higher volatility and competitive pressure.
- Focused on AI-driven decision support via Cyber & Engineering and Analytics segments.
- High exposure to technological disruption through AI, machine learning, and cybersecurity innovation.
Jack Henry & Associates, Inc. vs BigBear.ai Holdings, Inc. Positioning
Jack Henry shows a diversified business model across multiple financial technology segments, providing stable revenue streams. BigBear.ai concentrates on AI and cybersecurity niches, offering growth potential but with higher risk and market volatility.
Which has the best competitive advantage?
Jack Henry demonstrates a very favorable economic moat with growing ROIC above WACC, indicating durable competitive advantage. BigBear.ai’s declining ROIC and value destruction suggest a weak competitive position currently.
Stock Comparison
The stock price movements over the past 12 months reveal distinct bullish trends for both Jack Henry & Associates, Inc. and BigBear.ai Holdings, Inc., with Jack Henry showing accelerating gains and BigBear.ai experiencing a recent deceleration phase.
Trend Analysis
Jack Henry & Associates, Inc. (JKHY) exhibited a 9.46% price increase over the past year, indicating a bullish trend with accelerating momentum, reaching a high of 192.6 and a low of 146.26.
BigBear.ai Holdings, Inc. (BBAI) showed a substantial 221.03% price rise over the same period, also bullish but with decelerating gains and a lower volatility profile, peaking at 9.02 and bottoming at 1.21.
Comparing both, BBAI delivered the highest market performance with a 221.03% gain versus JKHY’s 9.46%, despite recent negative momentum in BBAI’s short-term trend.
Target Prices
Analysts provide a clear consensus on target prices for both Jack Henry & Associates, Inc. and BigBear.ai Holdings, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Jack Henry & Associates, Inc. | 220 | 161 | 196 |
| BigBear.ai Holdings, Inc. | 6 | 6 | 6 |
Jack Henry & Associates’ consensus target price of 196 is slightly above its current price of 192.6, reflecting moderate upside potential. BigBear.ai’s consensus target price is 6, just below its current price of 6.26, indicating a neutral outlook from analysts.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Jack Henry & Associates, Inc. (JKHY) and BigBear.ai Holdings, Inc. (BBAI):
Rating Comparison
JKHY Rating
- Rating: A- indicating a very favorable overall assessment.
- Discounted Cash Flow Score: 4, favorable valuation outlook.
- ROE Score: 4, favorable efficiency generating shareholder profit.
- ROA Score: 5, very favorable asset utilization effectiveness.
- Debt To Equity Score: 4, favorable financial risk profile.
- Overall Score: 4, favorable financial standing summary.
BBAI Rating
- Rating: C- showing a very unfavorable overall assessment.
- Discounted Cash Flow Score: 1, very unfavorable valuation.
- ROE Score: 1, very unfavorable efficiency.
- ROA Score: 1, very unfavorable asset utilization.
- Debt To Equity Score: 3, moderate financial risk profile.
- Overall Score: 1, very unfavorable financial standing summary.
Which one is the best rated?
Based strictly on the provided data, JKHY is clearly better rated with consistently favorable to very favorable scores across all key metrics, while BBAI’s ratings are mostly very unfavorable except for a moderate debt-to-equity score.
Scores Comparison
Here is a comparison of the financial health scores for Jack Henry & Associates, Inc. and BigBear.ai Holdings, Inc.:
JKHY Scores
- Altman Z-Score: 12.58, safe zone, low bankruptcy risk.
- Piotroski Score: 8, very strong financial strength.
BBAI Scores
- Altman Z-Score: 2.93, grey zone, moderate bankruptcy risk.
- Piotroski Score: 3, very weak financial strength.
Which company has the best scores?
Based on the provided data, JKHY shows a much stronger financial position, with a high Altman Z-Score indicating safety and a very strong Piotroski Score, unlike BBAI’s moderate and very weak scores.
Grades Comparison
The following presents a comparison of the latest available grades for Jack Henry & Associates, Inc. and BigBear.ai Holdings, Inc.:
Jack Henry & Associates, Inc. Grades
This table summarizes recent grading actions by reputable financial institutions for Jack Henry & Associates, Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wolfe Research | Upgrade | Outperform | 2026-01-08 |
| UBS | Maintain | Neutral | 2026-01-08 |
| RBC Capital | Upgrade | Outperform | 2025-12-16 |
| Baird | Maintain | Neutral | 2025-12-15 |
| Keefe, Bruyette & Woods | Upgrade | Outperform | 2025-12-08 |
| Goldman Sachs | Maintain | Neutral | 2025-11-07 |
| Wells Fargo | Maintain | Equal Weight | 2025-11-06 |
| Compass Point | Upgrade | Buy | 2025-11-06 |
| DA Davidson | Maintain | Buy | 2025-10-29 |
| Goldman Sachs | Maintain | Neutral | 2025-10-13 |
Jack Henry & Associates, Inc. has experienced several recent upgrades to “Outperform” and “Buy,” with many maintained neutral ratings, indicating a stable to positive outlook from analysts.
BigBear.ai Holdings, Inc. Grades
This table summarizes recent grading actions by reputable financial institutions for BigBear.ai Holdings, Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Cantor Fitzgerald | Downgrade | Neutral | 2026-01-07 |
| HC Wainwright & Co. | Maintain | Buy | 2025-11-11 |
| HC Wainwright & Co. | Maintain | Buy | 2025-08-12 |
| HC Wainwright & Co. | Maintain | Buy | 2025-07-01 |
| HC Wainwright & Co. | Maintain | Buy | 2025-03-07 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-03-07 |
| HC Wainwright & Co. | Maintain | Buy | 2024-12-30 |
| HC Wainwright & Co. | Maintain | Buy | 2024-11-06 |
| HC Wainwright & Co. | Maintain | Buy | 2024-10-15 |
| Cantor Fitzgerald | Maintain | Overweight | 2024-08-21 |
BigBear.ai Holdings, Inc. maintains mostly “Buy” and “Overweight” grades, though a recent downgrade to “Neutral” by Cantor Fitzgerald suggests some caution among analysts.
Which company has the best grades?
Jack Henry & Associates, Inc. holds predominantly “Outperform” and “Buy” ratings with multiple recent upgrades, while BigBear.ai Holdings, Inc. mostly retains “Buy” but with a recent downgrade to “Neutral.” Investors might interpret Jack Henry’s stronger consensus as reflecting comparatively more confidence in its near-term prospects.
Strengths and Weaknesses
Below is a comparison table highlighting key strengths and weaknesses of Jack Henry & Associates, Inc. (JKHY) and BigBear.ai Holdings, Inc. (BBAI) based on the most recent financial and operational data.
| Criterion | Jack Henry & Associates, Inc. (JKHY) | BigBear.ai Holdings, Inc. (BBAI) |
|---|---|---|
| Diversification | Strong with multiple segments: Core, Payments, Complementary | Limited mainly to analytics and related services |
| Profitability | High net margin (19.19%), ROIC 17.63%, consistent value creation | Negative net margin (-186.78%), negative ROIC (-93.42%), value destruction |
| Innovation | Steady growth in ROIC indicates successful innovation and efficient capital use | Declining ROIC trend indicates challenges in innovation and profitability |
| Global presence | Established with wide service offerings in financial tech | Smaller scale, less diversified in global reach |
| Market Share | Solid, with robust revenue streams across segments | Smaller market share, still developing |
Key takeaways: Jack Henry & Associates demonstrates a durable competitive advantage with strong profitability, diversification, and growing returns on invested capital. In contrast, BigBear.ai struggles with profitability and value creation, showing a declining financial trend and limited diversification. Investors should weigh JKHY’s stability against BBAI’s higher risk profile.
Risk Analysis
Below is a comparative table of key risks for Jack Henry & Associates, Inc. (JKHY) and BigBear.ai Holdings, Inc. (BBAI) based on the latest available data:
| Metric | Jack Henry & Associates, Inc. (JKHY) | BigBear.ai Holdings, Inc. (BBAI) |
|---|---|---|
| Market Risk | Low beta (0.73) suggests lower volatility | High beta (3.21) indicates high volatility and market sensitivity |
| Debt level | No debt, excellent interest coverage | Moderate debt to assets (42.6%), poor interest coverage, moderate risk |
| Regulatory Risk | Moderate, operates in financial tech sector | Higher due to AI and cybersecurity focus with evolving regulations |
| Operational Risk | Established with stable operations, low risk | Higher operational risk due to smaller size and aggressive growth |
| Environmental Risk | Low, tech services sector with minimal direct impact | Low, mainly software and consulting services |
| Geopolitical Risk | Moderate, US-focused financial services | Moderate, reliance on government contracts and defense sectors |
Synthesis: Jack Henry & Associates shows strong financial stability with minimal debt and low market volatility, making its market and debt risks the lowest. BigBear.ai carries higher market risk due to volatility, moderate debt, and regulatory uncertainty in AI and cybersecurity sectors, posing the most impactful risks for investors.
Which Stock to Choose?
Jack Henry & Associates, Inc. (JKHY) shows steady income growth with a 7.21% revenue increase in 2025 and a favorable net margin of 19.19%. Its financial ratios are largely positive, with strong profitability, low debt, and a very favorable credit rating of A-. The company demonstrates a durable competitive advantage with a very favorable MOAT rating and robust cash flow metrics.
BigBear.ai Holdings, Inc. (BBAI) presents mixed signals, with modest revenue growth of 1.98% in 2024 but significant net margin losses at -186.78%. Its financial ratios are mostly unfavorable, marked by weak profitability, liquidity challenges, and an overall very unfavorable rating of C-. The company’s MOAT rating is very unfavorable, indicating declining profitability and value destruction.
For investors prioritizing financial stability, profitability, and consistent value creation, Jack Henry & Associates might appear more favorable. Conversely, those with a higher risk tolerance seeking potential growth opportunities could interpret BigBear.ai’s situation differently, given its volatile metrics and recent price surge. The choice may depend on the investor’s strategy and risk appetite.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Jack Henry & Associates, Inc. and BigBear.ai Holdings, Inc. to enhance your investment decisions:
