ACI Worldwide (NASDAQ:ACIW – Get Free Report) and Trend Micro (OTCMKTS:TMICY – Get Free Report) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.
Institutional and Insider Ownership
94.7% of ACI Worldwide shares are owned by institutional investors. Comparatively, 0.1% of Trend Micro shares are owned by institutional investors. 1.1% of ACI Worldwide shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and price targets for ACI Worldwide and Trend Micro, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ACI Worldwide | 1 | 1 | 3 | 0 | 2.40 |
| Trend Micro | 0 | 0 | 0 | 0 | 0.00 |
Profitability
This table compares ACI Worldwide and Trend Micro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ACI Worldwide | 12.88% | 16.44% | 7.66% |
| Trend Micro | 12.51% | 28.76% | 8.83% |
Earnings & Valuation
This table compares ACI Worldwide and Trend Micro”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ACI Worldwide | $1.76 billion | 2.31 | $226.66 million | $2.17 | 18.45 |
| Trend Micro | $1.85 billion | 2.37 | $231.30 million | $1.75 | 19.15 |
Trend Micro has higher revenue and earnings than ACI Worldwide. ACI Worldwide is trading at a lower price-to-earnings ratio than Trend Micro, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
ACI Worldwide has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Trend Micro has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.
Summary
ACI Worldwide beats Trend Micro on 8 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 Trend Micro
Trend Micro Incorporated develops and sells security-related software for computers and related services in Japan and internationally. The company offers platforms, such as vision one platform, attack surface management, extended detection and response (XDR), cloud security, endpoint security, network security, email security, OT/ICS security, and threat intelligence. It also provides services packages, managed XDR, incident response, and support services. Additionally, the company serves 5G networks, healthcare, manufacturing, oil and gas, electric utility, and automotive industries. The company was incorporated in 1965 and is headquartered in Tokyo, Japan.
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