nCino (NASDAQ:NCNO – Get Free Report) and ACI Worldwide (NASDAQ:ACIW – Get Free Report) are both mid-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.
Analyst Ratings
This is a breakdown of recent ratings and target prices for nCino and ACI Worldwide, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| nCino | 1 | 6 | 9 | 1 | 2.59 |
| ACI Worldwide | 0 | 2 | 2 | 1 | 2.80 |
nCino presently has a consensus price target of $23.42, suggesting a potential upside of 3.29%. ACI Worldwide has a consensus price target of $61.00, suggesting a potential upside of 1.63%. Given nCino’s higher probable upside, analysts plainly believe nCino is more favorable than ACI Worldwide.
Valuation and Earnings
This table compares nCino and ACI Worldwide”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| nCino | $594.78 million | 4.03 | $5.18 million | $0.30 | 75.57 |
| ACI Worldwide | $1.76 billion | 3.44 | $226.66 million | $1.62 | 37.05 |
ACI Worldwide has higher revenue and earnings than nCino. ACI Worldwide is trading at a lower price-to-earnings ratio than nCino, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
94.8% of nCino shares are owned by institutional investors. Comparatively, 94.7% of ACI Worldwide shares are owned by institutional investors. 1.9% of nCino shares are owned by company insiders. Comparatively, 1.2% of ACI Worldwide shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
nCino has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, ACI Worldwide has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.
Profitability
This table compares nCino and ACI Worldwide’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| nCino | 5.40% | 7.71% | 4.83% |
| ACI Worldwide | 9.46% | 13.65% | 6.60% |
Summary
ACI Worldwide beats nCino on 8 of the 14 factors compared between the two stocks.
About nCino
nCino, Inc., a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. Its nCino Bank Operating System connects financial institution employees, clients and third parties on a single cloud-based platform which include client onboarding, deposit account opening, loan origination, end-to-end mortgage suite, and powerful ecosystem. The company's nIQ, an application suite that utilizes data analytics and artificial intelligence and machine learning to provide its customers with automation and insights into their operations, such as tools for analyzing, measuring, and managing credit risk, as well as to enhance their ability to comply with regulatory requirements. It also offers SimpleNexus, a cloud-based mobile-first homeownership software solution. The company serves financial institution customers, including global financial institutions, enterprise banks, regional banks, community banks, credit unions, new market entrants, and independent mortgage banks through business development representatives, account executives, field sales engineers, and customer success managers. nCino, Inc. was founded in 2011 and is headquartered in Wilmington, North Carolina.
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.
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