Head-To-Head Analysis: ACI Worldwide (ACIW) vs. The Competition

ACI Worldwide (NASDAQ: ACIW) is one of 178 public companies in the “IT Services & Consulting” industry, but how does it compare to its rivals? We will compare ACI Worldwide to similar companies based on the strength of its institutional ownership, dividends, risk, profitability, analyst recommendations, earnings and valuation.

Profitability

This table compares ACI Worldwide and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ACI Worldwide 3.72% 11.02% 4.55%
ACI Worldwide Competitors -20.07% -259.52% -3.37%

Risk & Volatility

ACI Worldwide has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, ACI Worldwide’s rivals have a beta of 1.14, suggesting that their average stock price is 14% more volatile than the S&P 500.

Institutional and Insider Ownership

62.4% of shares of all “IT Services & Consulting” companies are held by institutional investors. 4.2% of ACI Worldwide shares are held by company insiders. Comparatively, 17.0% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares ACI Worldwide and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
ACI Worldwide $1.01 billion $129.53 million 68.40
ACI Worldwide Competitors $2.79 billion $288.44 million 304.62

ACI Worldwide’s rivals have higher revenue and earnings than ACI Worldwide. ACI Worldwide is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings for ACI Worldwide and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ACI Worldwide 0 1 2 0 2.67
ACI Worldwide Competitors 755 4674 7422 165 2.54

ACI Worldwide presently has a consensus target price of $25.50, suggesting a potential upside of 12.98%. As a group, “IT Services & Consulting” companies have a potential downside of 10.12%. Given ACI Worldwide’s stronger consensus rating and higher probable upside, equities analysts clearly believe ACI Worldwide is more favorable than its rivals.

Summary

ACI Worldwide beats its rivals on 7 of the 13 factors compared.

About ACI Worldwide

ACI Worldwide, Inc. develops, markets, installs and supports a line of software products and services primarily focused on facilitating electronic payments. The Company also distributes or acts as a sales agent for software developed by third parties. Its products and services are used principally by financial institutions, retailers, billers and electronic payment processors, both in domestic and international markets. The Company’s products are sold and supported through distribution networks covering three geographic regions, including the Americas, Europe/Middle East/Africa (EMEA) and Asia/Pacific. The Company’s products and services are used by a range of transaction-generating endpoints, including automated teller machines (ATM), retail merchant point-of-sale (POS) terminals, bank branches, corporations and Internet commerce sites. The Company provides payment solutions to financial institutions globally for both retail banking and transaction banking services.

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