Financial Analysis: Wetouch Technology (NASDAQ:WETH) & ACI Worldwide (NASDAQ:ACIW)

Wetouch Technology (NASDAQ:WETHGet Free Report) and ACI Worldwide (NASDAQ:ACIWGet Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Profitability

This table compares Wetouch Technology and ACI Worldwide’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wetouch Technology 15.86% 5.38% 5.20%
ACI Worldwide 12.88% 16.44% 7.66%

Insider and Institutional Ownership

94.7% of ACI Worldwide shares are owned by institutional investors. 0.1% of Wetouch Technology shares are owned by company insiders. Comparatively, 1.1% 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 company is poised for long-term growth.

Volatility and Risk

Wetouch Technology has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, ACI Worldwide has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Wetouch Technology and ACI Worldwide, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wetouch Technology 1 0 0 0 1.00
ACI Worldwide 1 1 3 0 2.40

ACI Worldwide has a consensus target price of $60.00, suggesting a potential upside of 35.69%. Given ACI Worldwide’s stronger consensus rating and higher possible upside, analysts plainly believe ACI Worldwide is more favorable than Wetouch Technology.

Earnings & Valuation

This table compares Wetouch Technology and ACI Worldwide”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wetouch Technology $45.14 million 0.50 $7.16 million $0.60 3.15
ACI Worldwide $1.76 billion 2.56 $226.66 million $2.17 20.38

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

Summary

ACI Worldwide beats Wetouch Technology on 13 of the 14 factors compared between the two stocks.

About Wetouch Technology

(Get Free Report)

Wetouch Technology Inc. engages in the research, development, manufacture, sale, and servicing of medium to large sized projected capacitive touchscreens in the Peoples Republic of China, Taiwan, South Korea, and internationally. The company offers various touch panels, including glass-glass, which are primarily used in GPS/car entertainment panels in mid-size and luxury cars, industrial human-machine interface (HMI), financial and banking terminals, point of sale, and lottery machines; glass-film-film products that are used in GPS and entertainment panels, industrial HMI, financial and banking terminals, lottery, and gaming industry; plastic-glass for use in GPS/entertainment panels, motor vehicle GPS, smart home products, robots, and charging stations; and glass-films used in industrial HMI. Wetouch Technology Inc. was founded in 2011 and is based in Meishan, China.

About ACI Worldwide

(Get Free Report)

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.

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