Contrasting CDW (CDW) and ACI Worldwide (ACIW)
CDW (NASDAQ: CDW) and ACI Worldwide (NASDAQ:ACIW) are both mid-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.
CDW pays an annual dividend of $0.84 per share and has a dividend yield of 1.2%. ACI Worldwide does not pay a dividend. CDW pays out 31.1% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for CDW and ACI Worldwide, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CDW presently has a consensus price target of $66.72, indicating a potential downside of 3.58%. ACI Worldwide has a consensus price target of $25.50, indicating a potential upside of 13.59%. Given ACI Worldwide’s stronger consensus rating and higher possible upside, analysts clearly believe ACI Worldwide is more favorable than CDW.
This table compares CDW and ACI Worldwide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
90.6% of CDW shares are held by institutional investors. 2.6% of CDW shares are held by company insiders. Comparatively, 4.2% of ACI Worldwide shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares CDW and ACI Worldwide’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CDW||$13.98 billion||0.76||$424.40 million||$2.70||25.63|
|ACI Worldwide||$1.01 billion||2.65||$129.53 million||$0.33||68.03|
CDW has higher revenue and earnings than ACI Worldwide. CDW is trading at a lower price-to-earnings ratio than ACI Worldwide, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
CDW has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, ACI Worldwide has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.
CDW beats ACI Worldwide on 9 of the 17 factors compared between the two stocks.
CDW Company Profile
CDW Corporation (CDW) is a provider of integrated information technology (IT) solutions in the United States, Canada and the United Kingdom. The Company’s segments include Corporate, Public and Other. The Corporate segment consists of private sector business customers in the United States based on employee size between Medium/Large customers, which primarily includes organizations with more than 100 employees, and Small Business customers, which primarily includes organizations with up to 100 employees. Its Public segment comprises government agencies and education and healthcare institutions in the United States. Its Other segment includes Canada and CDW UK. The CDW Advanced Services business consists primarily of customized engineering services delivered by technology specialists and engineers, and managed services that include Infrastructure as a Service (IaaS) offerings. The Company has centralized logistics and headquarters functions that provide services to the segments.
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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