Head-To-Head Survey: ACI Worldwide (ACIW) & Its Competitors

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

Institutional and Insider Ownership

63.3% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 4.2% of ACI Worldwide shares are owned by insiders. Comparatively, 16.4% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for ACI Worldwide and its rivals, as reported 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 720 4560 7321 163 2.54

ACI Worldwide currently has a consensus price target of $25.50, suggesting a potential upside of 11.45%. As a group, “IT Services & Consulting” companies have a potential upside of 2.71%. Given ACI Worldwide’s stronger consensus rating and higher possible upside, research analysts clearly believe ACI Worldwide is more favorable than its rivals.

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 -20.13% -259.40% -3.54%

Volatility and Risk

ACI Worldwide has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, ACI Worldwide’s rivals have a beta of 1.11, indicating that their average stock price is 11% more volatile than the S&P 500.

Earnings and Valuation

This table compares ACI Worldwide and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
ACI Worldwide $1.01 billion $129.53 million 69.34
ACI Worldwide Competitors $2.81 billion $293.37 million 231.17

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.

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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