Jack Henry & Associates, Inc. (JKHY) and Globant S.A. (GLOB) are two prominent players in the Information Technology Services sector, each carving distinct paths through innovation and market focus. Jack Henry specializes in technology solutions for financial institutions in the US, while Globant offers a broad range of digital transformation services globally. This article will explore their strategies and growth potential to help you decide which company could be the most attractive addition to your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between Jack Henry & Associates, Inc. and Globant S.A. by providing an overview of these two companies and their main differences.
Jack Henry & Associates, Inc. Overview
Jack Henry & Associates, Inc. is a US-based technology company focused on providing technology solutions and payment processing services primarily to financial services organizations. Established in 1976, it operates through four segments including core banking and payments, delivering integrated applications and digital products that support banks and credit unions. The company is recognized for its specialized financial performance and risk management solutions.
Globant S.A. Overview
Globant S.A., headquartered in Luxembourg, is a global technology services company offering a broad range of digital and IT solutions. Founded in 2003, Globant provides services such as cloud transformation, data strategy, cybersecurity, and digital experience platforms across various industries including healthcare, media, and finance. It emphasizes innovation through reinvention studios and emerging technologies like blockchain and metaverse.
Key similarities and differences
Both companies operate in the technology sector with a focus on digital services; however, Jack Henry & Associates is specialized in financial technology solutions targeting US-based financial institutions, while Globant delivers a wider variety of technology services globally across diverse industries. Jack Henry has a more concentrated market niche with fewer employees, whereas Globant has a larger workforce and a broader international presence, reflecting distinct business models and market strategies.
Income Statement Comparison
Below is a comparison of key income statement metrics for Jack Henry & Associates, Inc. and Globant S.A. for their most recent fiscal years.
| Metric | Jack Henry & Associates, Inc. (JKHY) | Globant S.A. (GLOB) |
|---|---|---|
| Market Cap | 14.0B | 3.0B |
| Revenue | 2.38B | 2.42B |
| EBITDA | 801M | 417M |
| EBIT | 596M | 254M |
| Net Income | 456M | 166M |
| EPS | 6.24 | 3.82 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Jack Henry & Associates, Inc.
Jack Henry & Associates exhibited consistent revenue growth, increasing from $1.76B in 2021 to $2.38B in 2025, with net income rising from $311M to $456M. Margins improved steadily, highlighted by a gross margin of 42.71% and net margin of 19.19% in 2025. The latest year showed solid profit expansion with net income growing 19.3% and EBIT margin favorable at 25.11%.
Globant S.A.
Globant’s revenue surged sharply from $814M in 2020 to $2.42B in 2024, with net income rising from $54M to $166M. Margins remain lower than Jack Henry, with a 35.74% gross margin and 6.86% net margin in 2024. Despite strong revenue and EBIT growth, the most recent year saw a 9.3% decline in net margin, signaling some pressure on profitability.
Which one has the stronger fundamentals?
Jack Henry shows stable, favorable margins and steady earnings growth, reflecting strong operational efficiency and risk management. Globant impresses with rapid top-line expansion and substantial net income growth overall but faces margin compression recently. Both have favorable income statements, though Jack Henry’s higher margins and more consistent profitability suggest comparatively stronger fundamentals.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Jack Henry & Associates, Inc. (JKHY) and Globant S.A. (GLOB) based on their most recent fiscal year data.
| Ratios | Jack Henry & Associates, Inc. (JKHY) | Globant S.A. (GLOB) |
|---|---|---|
| ROE | 21.39% | 8.44% |
| ROIC | 17.63% | 6.82% |
| P/E | 28.88 | 57.64 |
| P/B | 6.18 | 4.86 |
| Current Ratio | 1.27 | 1.54 |
| Quick Ratio | 1.27 | 1.54 |
| D/E (Debt-to-Equity) | 0.00 | 0.21 |
| Debt-to-Assets | 0.00 | 12.95% |
| Interest Coverage | 54.49 | 7.87 |
| Asset Turnover | 0.78 | 0.76 |
| Fixed Asset Turnover | 10.75 | 8.70 |
| Payout ratio | 36.13% | 0.00% |
| Dividend yield | 1.25% | 0.00% |
Interpretation of the Ratios
Jack Henry & Associates, Inc.
Jack Henry & Associates shows a generally favorable ratio profile with strong profitability metrics such as a 19.19% net margin and 21.39% return on equity. However, valuation ratios like PE at 28.88 and PB at 6.18 are considered unfavorable, suggesting a potentially high market price relative to earnings and book value. The company pays dividends, offering a stable 1.25% yield with a balanced payout supported by free cash flow, indicating sustainable shareholder returns without excessive risk.
Globant S.A.
Globant exhibits mixed financial ratios with neutral to unfavorable performance; net margin stands at 6.86% with a low 8.44% return on equity, reflecting weaker profitability. Valuation ratios are high, including a PE of 57.64 and PB of 4.86, which may imply market overvaluation or growth expectations. Globant does not pay dividends, likely due to reinvestment priorities or growth strategies, supported by a solid current ratio and moderate leverage, aiming at long-term value creation.
Which one has the best ratios?
Jack Henry & Associates presents a more favorable overall ratio set, combining solid profitability, strong returns, and reasonable risk indicators, despite stretched valuation multiples. Globant’s ratios are less robust, with lower profitability and higher valuation concerns, compounded by no dividend payouts. Thus, Jack Henry’s financial metrics appear stronger and more balanced relative to Globant’s.
Strategic Positioning
This section compares the strategic positioning of Jack Henry & Associates, Inc. and Globant S.A. regarding Market position, Key segments, and Exposure to technological disruption:
Jack Henry & Associates, Inc.
- Strong market position focused on US financial services with moderate competitive pressure.
- Key segments include Core banking, Payments, and Complementary financial services.
- Moderate exposure, primarily focused on traditional banking tech with gradual digital adoption.
Globant S.A.
- Global presence in technology services with higher competitive pressure and volatility.
- Diverse technology offerings including e-commerce, cloud, AI, healthcare, and media.
- High exposure to disruption through digital transformation, cloud, AI, blockchain, and metaverse.
Jack Henry & Associates, Inc. vs Globant S.A. Positioning
Jack Henry has a concentrated focus on US financial institutions, leveraging core banking and payments technology, providing stability but limited diversification. Globant operates globally with broad tech services across multiple industries, offering innovation-driven growth but facing greater market variability.
Which has the best competitive advantage?
Jack Henry demonstrates a very favorable moat with sustained ROIC above WACC and growing profitability, indicating a durable competitive advantage. Globant shows a slightly unfavorable moat, shedding value despite improving profitability, signaling a less stable advantage.
Stock Comparison
The stock prices of Jack Henry & Associates, Inc. (JKHY) and Globant S.A. (GLOB) exhibited contrasting trajectories over the past 12 months, with JKHY showing steady gains and GLOB enduring significant declines before recent partial recovery.
Trend Analysis
Jack Henry & Associates, Inc. (JKHY) displayed a bullish trend over the past year with a 9.46% price increase and accelerating momentum. The stock reached a high of 192.6 and a low of 146.26, reflecting moderate volatility (std dev 9.15).
Globant S.A. (GLOB) experienced a bearish trend with a 70.01% decline in stock price over the last 12 months and accelerating downward pressure. The price ranged from a high of 231.36 to a low of 56.11 with high volatility (std dev 61.44).
Comparing both stocks, JKHY delivered the highest market performance with positive growth, whereas GLOB showed substantial losses despite a recent moderate upward correction of 10.31%.
Target Prices
The current analyst consensus presents a mixed but generally positive outlook for these technology service companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Jack Henry & Associates, Inc. | 220 | 161 | 196 |
| Globant S.A. | 80 | 68 | 72.5 |
Analysts expect Jack Henry & Associates to trade slightly above its current price of $192.6, suggesting moderate upside potential. Globant’s consensus target of $72.5 is marginally above its current price of $67.93, indicating cautious optimism.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Jack Henry & Associates, Inc. (JKHY) and Globant S.A. (GLOB):
Rating Comparison
JKHY Rating
- Rating: A- indicating a very favorable overall financial standing.
- Discounted Cash Flow Score: 4, favorable, suggesting reasonable valuation.
- ROE Score: 4, favorable, showing efficient profit generation from equity.
- ROA Score: 5, very favorable, excellent asset utilization for earnings.
- Debt To Equity Score: 4, favorable, reflects manageable financial risk.
- Overall Score: 4, favorable, strong overall financial health.
GLOB Rating
- Rating: A- indicating a very favorable overall financial standing.
- Discounted Cash Flow Score: 5, very favorable, indicating strong valuation.
- ROE Score: 3, moderate, indicating average efficiency in generating profit.
- ROA Score: 3, moderate, average effectiveness in asset utilization.
- Debt To Equity Score: 3, moderate, somewhat higher financial risk.
- Overall Score: 4, favorable, strong overall financial health.
Which one is the best rated?
Both JKHY and GLOB share the same overall rating of A- and an overall score of 4, indicating favorable financial health. JKHY scores higher in ROE, ROA, and debt management, while GLOB has a stronger discounted cash flow score.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for the two companies:
JKHY Scores
- Altman Z-Score: 12.58, indicating a safe financial zone with very low bankruptcy risk.
- Piotroski Score: 8, classified as very strong financial health.
GLOB Scores
- Altman Z-Score: 3.05, also in the safe zone but much closer to the grey area.
- Piotroski Score: 5, representing average financial strength.
Which company has the best scores?
JKHY shows significantly stronger scores with a much higher Altman Z-Score and a very strong Piotroski Score, compared to GLOB’s moderate safe zone Altman Z-Score and average Piotroski Score.
Grades Comparison
Here is the comparison of the latest grades and rating consensus for the two companies:
Jack Henry & Associates, Inc. Grades
The following table summarizes recent grades from reputable financial analysts 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 demonstrates a positive trend with multiple upgrades to Outperform and Buy ratings, balanced by several Neutral ratings.
Globant S.A. Grades
The following table summarizes recent grades from reputable financial analysts for Globant S.A.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Jefferies | Downgrade | Hold | 2025-11-20 |
| UBS | Maintain | Neutral | 2025-11-18 |
| JP Morgan | Maintain | Neutral | 2025-11-14 |
| Needham | Maintain | Buy | 2025-11-14 |
| Canaccord Genuity | Maintain | Hold | 2025-11-14 |
| Goldman Sachs | Maintain | Neutral | 2025-10-09 |
| UBS | Maintain | Neutral | 2025-08-20 |
| Goldman Sachs | Maintain | Neutral | 2025-08-18 |
| Needham | Maintain | Buy | 2025-08-15 |
| JP Morgan | Downgrade | Neutral | 2025-08-15 |
Globant’s ratings are mixed, with several Neutral and Hold ratings, a couple of downgrades, but some maintained Buy ratings from Needham.
Which company has the best grades?
Both companies have a consensus rating of “Buy,” but Jack Henry & Associates, Inc. shows a stronger pattern of recent upgrades to Outperform and Buy, suggesting more analyst confidence. This could imply relatively more positive market expectations for Jack Henry & Associates, potentially impacting investor sentiment and risk assessment.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Jack Henry & Associates, Inc. (JKHY) and Globant S.A. (GLOB) based on their latest financials and market positions.
| Criterion | Jack Henry & Associates, Inc. (JKHY) | Globant S.A. (GLOB) |
|---|---|---|
| Diversification | Balanced revenue streams across core, payments, and complementary segments | Focused mainly on digital consulting and software development |
| Profitability | High profitability with 19.19% net margin and growing ROIC of 17.63% | Moderate profitability, net margin at 6.86%, ROIC 6.82% but improving |
| Innovation | Moderate innovation with stable product offerings in financial tech | Strong innovation culture, rapidly growing ROIC but still value destructive |
| Global presence | Primarily US-focused with solid banking system penetration | Global footprint with diverse international clients |
| Market Share | Strong position in US financial services tech | Growing market share in digital transformation but faces intense competition |
Jack Henry & Associates demonstrates a durable competitive advantage with strong profitability and stable diversification, making it a reliable choice for investors cautious about risk. Globant shows promising innovation and growth potential but currently struggles with value creation, suggesting a higher risk-reward profile.
Risk Analysis
Below is a comparison table of key risks affecting Jack Henry & Associates, Inc. (JKHY) and Globant S.A. (GLOB) in 2026:
| Metric | Jack Henry & Associates, Inc. (JKHY) | Globant S.A. (GLOB) |
|---|---|---|
| Market Risk | Moderate (Beta 0.73, stable tech sector focus in US) | Elevated (Beta 1.20, volatile tech services market globally) |
| Debt level | Very low (Debt-to-equity 0, strong balance sheet) | Low (Debt-to-equity 0.21, manageable leverage) |
| Regulatory Risk | Moderate (US financial services regulations) | Moderate to high (varied regulations in multiple countries) |
| Operational Risk | Low (Specialized financial technology, strong operational metrics) | Moderate (Complex global operations, integration challenges) |
| Environmental Risk | Low (Limited direct environmental impact) | Moderate (Global footprint with sustainability initiatives) |
| Geopolitical Risk | Low (Primarily US operations) | Moderate to high (Exposure to geopolitical tensions in Latin America, Europe) |
Synthesis: The most impactful and likely risks for JKHY center on moderate market fluctuations and regulatory compliance within US financial services. For GLOB, geopolitical tensions and market volatility pose higher risks due to its global presence. Both maintain low debt, mitigating financial risk, but GLOB faces additional operational and regulatory challenges in diverse markets.
Which Stock to Choose?
Jack Henry & Associates, Inc. (JKHY) shows favorable income evolution with steady revenue and net income growth, strong profitability, low debt, and a very favorable financial ratios profile. Its rating is very favorable, reflecting robust financial health.
Globant S.A. (GLOB) presents favorable income growth, albeit with a lower net margin and profitability compared to JKHY. It carries moderate debt with slightly favorable financial ratios and an overall very favorable rating, though some metrics remain less robust.
JKHY could appear more suitable for investors seeking stability and quality, given its strong profitability and very favorable moat. GLOB might appeal to those with a tolerance for higher risk looking for growth potential despite its less efficient capital use and moderate debt levels.
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 Globant S.A. to enhance your investment decisions:
