ACI Worldwide (NASDAQ:ACIW) and The Competition Head-To-Head Review

ACI Worldwide (NASDAQ: ACIW) is one of 182 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 analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Earnings and 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 73.13
ACI Worldwide Competitors $2.83 billion $298.24 million 348.94

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 summary of current recommendations 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 822 4716 7519 182 2.53

ACI Worldwide presently has a consensus target price of $25.50, indicating a potential upside of 8.97%. As a group, “IT Services & Consulting” companies have a potential downside of 11.09%. Given ACI Worldwide’s stronger consensus rating and higher possible upside, equities research analysts plainly believe ACI Worldwide is more favorable than its rivals.

Volatility & Risk

ACI Worldwide has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, ACI Worldwide’s rivals have a beta of 1.11, suggesting that their average share price is 11% more volatile than the S&P 500.

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 -23.25% -281.61% -5.23%

Insider and Institutional Ownership

62.4% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 4.2% of ACI Worldwide shares are owned by company insiders. Comparatively, 16.1% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

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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