Accenture (ACN) & ACI Worldwide (ACIW) Critical Contrast
Accenture (NYSE: ACN) and ACI Worldwide (NASDAQ:ACIW) are both mid-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.
Accenture pays an annual dividend of $2.66 per share and has a dividend yield of 1.7%. ACI Worldwide does not pay a dividend. Accenture pays out 48.9% of its earnings in the form of a dividend. ACI Worldwide has raised its dividend for 7 consecutive years.
Valuation & Earnings
This table compares Accenture and ACI Worldwide’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Accenture||$36.77 billion||2.74||$3.45 billion||$5.44||28.06|
|ACI Worldwide||$1.01 billion||2.69||$129.53 million||$0.33||69.21|
Accenture has higher revenue and earnings than ACI Worldwide. Accenture is trading at a lower price-to-earnings ratio than ACI Worldwide, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for Accenture and ACI Worldwide, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Accenture presently has a consensus price target of $146.29, indicating a potential downside of 4.18%. ACI Worldwide has a consensus price target of $25.50, indicating a potential upside of 11.65%. Given ACI Worldwide’s stronger consensus rating and higher possible upside, analysts clearly believe ACI Worldwide is more favorable than Accenture.
Institutional & Insider Ownership
72.5% of Accenture shares are owned by institutional investors. 0.2% of Accenture shares are owned by company insiders. Comparatively, 4.2% of ACI Worldwide shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Accenture has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, ACI Worldwide has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.
This table compares Accenture and ACI Worldwide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Accenture beats ACI Worldwide on 10 of the 17 factors compared between the two stocks.
Accenture Company Profile
Accenture plc is a professional services company serving clients in various industries and in geographic regions, including North America, Europe and Growth Markets. The Company provides management and technology consulting services. Its segments include Communications, Media and Technology; Financial Services; Health and Public Service; Products, and Resources. The Communications, Media & Technology segment serves communications, electronics, technology, media and entertainment industries. The Financial Services segment serves banking, capital markets and insurance industries. The Health & Public service segment serves healthcare payers and providers, and government departments and agencies, public service organizations, educational institutions and non-profit organizations. The Products segment serves a set of interconnected consumer-relevant industries. The Resources segment serves chemicals, energy, forest products, metals and mining, utilities and related industries.
ACI Worldwide Company Profile
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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