ACI Worldwide (NASDAQ: ACIW) is one of 186 public companies in the “IT Services & Consulting” industry, but how does it compare to its competitors? We will compare ACI Worldwide to related companies based on the strength of its dividends, analyst recommendations, valuation, profitability, risk, earnings and institutional ownership.

Volatility & Risk

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 competitors have a beta of 1.10, suggesting that their average stock price is 10% more volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
ACI Worldwide $1.01 billion $129.53 million 68.76
ACI Worldwide Competitors $2.79 billion $288.44 million 332.03

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

Analyst Recommendations

This is a summary of current ratings and target prices for ACI Worldwide and its competitors, 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 764 4718 7498 175 2.54

ACI Worldwide currently has a consensus target price of $25.50, indicating a potential upside of 12.38%. As a group, “IT Services & Consulting” companies have a potential downside of 10.08%. Given ACI Worldwide’s stronger consensus rating and higher possible upside, equities analysts clearly believe ACI Worldwide is more favorable than its competitors.

Institutional & Insider Ownership

63.0% 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, 16.5% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares ACI Worldwide and its competitors’ 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 -22.31% -273.77% -4.99%

Summary

ACI Worldwide beats its competitors 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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