Head to Head Analysis: ZoomInfo Technologies (NASDAQ:ZI) and ACI Worldwide (NASDAQ:ACIW)

ACI Worldwide (NASDAQ:ACIW) and ZoomInfo Technologies (NASDAQ:ZI) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for ACI Worldwide and ZoomInfo Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACI Worldwide	0	1	5	0	2.83
ZoomInfo Technologies	4	12	6	0	2.09

ACI Worldwide presently has a consensus price target of $47.50, indicating a potential downside of 5.68%. ZoomInfo Technologies has a consensus price target of $13.40, indicating a potential upside of 35.54%. Given ZoomInfo Technologies’ higher probable upside, analysts plainly believe ZoomInfo Technologies is more favorable than ACI Worldwide.

Profitability

This table compares ACI Worldwide and ZoomInfo Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ACI Worldwide	12.01%	19.18%	7.22%
ZoomInfo Technologies	1.25%	10.96%	3.30%

Earnings and Valuation

This table compares ACI Worldwide and ZoomInfo Technologies’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACI Worldwide	$1.45 billion	3.63	$121.51 million	$1.34	37.58
ZoomInfo Technologies	$1.23 billion	3.00	$107.30 million	$0.20	49.45

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

Risk and Volatility

ACI Worldwide has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, ZoomInfo Technologies has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.

Institutional & Insider Ownership

94.7% of ACI Worldwide shares are held by institutional investors. Comparatively, 95.5% of ZoomInfo Technologies shares are held by institutional investors. 1.0% of ACI Worldwide shares are held by insiders. Comparatively, 8.1% of ZoomInfo Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

ACI Worldwide beats ZoomInfo Technologies on 9 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 ZoomInfo Technologies

ZoomInfo Technologies Inc., together with its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally. The company's cloud-based platform provides information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage through automated sales tools, and track progress through the deal cycle. It serves enterprises, mid-market companies, and down to small businesses that operate in various industry, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. The company was founded in 2007 and is headquartered in Vancouver, Washington.