Tyler Technologies (NYSE:TYL) & ACI Worldwide (NASDAQ:ACIW) Head to Head Contrast

ACI Worldwide (NASDAQ:ACIW) and Tyler Technologies (NYSE:TYL) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Profitability

This table compares ACI Worldwide and Tyler Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ACI Worldwide	9.46%	13.65%	6.60%
Tyler Technologies	13.51%	12.21%	7.30%

Analyst Recommendations

This is a breakdown of current recommendations for ACI Worldwide and Tyler Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACI Worldwide	0	2	2	1	2.80
Tyler Technologies	0	4	11	1	2.81

ACI Worldwide currently has a consensus price target of $61.00, indicating a potential upside of 1.63%. Tyler Technologies has a consensus price target of $440.88, indicating a potential upside of 4.89%. Given Tyler Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Tyler Technologies is more favorable than ACI Worldwide.

Risk and Volatility

ACI Worldwide has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Tyler Technologies has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Earnings and Valuation

This table compares ACI Worldwide and Tyler Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACI Worldwide	$1.76 billion	3.44	$226.66 million	$1.62	37.05
Tyler Technologies	$2.33 billion	7.17	$315.60 million	$7.94	52.94

Tyler Technologies has higher revenue and earnings than ACI Worldwide. ACI Worldwide is trading at a lower price-to-earnings ratio than Tyler Technologies, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

94.7% of ACI Worldwide shares are owned by institutional investors. Comparatively, 93.3% of Tyler Technologies shares are owned by institutional investors. 1.2% of ACI Worldwide shares are owned by company insiders. Comparatively, 1.1% of Tyler Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Tyler Technologies beats ACI Worldwide on 10 of the 14 factors compared between the two stocks.

About ACI Worldwide

ACI Worldwide, Inc., a software company, develops, markets, installs, and supports a range of software products and solutions for facilitating digital payments in the United States and internationally. The company operates in three segments: Banks, Merchants, and Billers. The company offers ACI Acquiring, a solution to process credit, debit, and prepaid card transactions, deliver digital innovation, and fraud prevention; ACI Issuing, a digital payment issuing solution for new payment offering; and ACI Enterprise Payments Platform that provides payment processing and orchestration capabilities for digital payments. It also provides ACI Low Value Real-Time Payments, a platform for processing real-time payments; and ACI High Value Real-Time Payments, a payments engine that offers multi-bank, multi-currency, 24×7 payment processing, and SWIFT messaging. In addition, the company offers ACI Payments Orchestration Platform for optimizing payments; omni-channel payment platform; ACI Fraud Management, a real-time approach to fraud management; and ACI Speedpay, an integrated suite of digital billing, payment, disbursement, and communication services. The company offers electronic bill presentment and payment services to consumer finance, insurance, healthcare, higher education, utility, government, telecommunications, and mortgage sectors; implementation services, include product installations and configurations, and custom software modifications; and business and technical consultancy, on-site support, product education, and testing services, as well as distributes or acts as a sales agent for software developed by third parties. It markets its products under the ACI Worldwide brand. The company was formerly known as Transaction Systems Architects, Inc. and changed its name to ACI Worldwide, Inc. in July 2007. The company was founded in 1975 and is based in Elkhorn, Nebraska.

About Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.