Paycor HCM (NASDAQ:PYCR – Get Free Report) and ACI Worldwide (NASDAQ:ACIW – Get Free Report) are both mid-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Paycor HCM and ACI Worldwide, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Paycor HCM | 0 | 8 | 7 | 0 | 2.47 |
| ACI Worldwide | 0 | 1 | 5 | 0 | 2.83 |
Paycor HCM presently has a consensus price target of $19.40, suggesting a potential upside of 42.12%. ACI Worldwide has a consensus price target of $47.50, suggesting a potential downside of 5.06%. Given Paycor HCM’s higher possible upside, research analysts plainly believe Paycor HCM is more favorable than ACI Worldwide.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Paycor HCM | -9.00% | 2.98% | 1.41% |
| ACI Worldwide | 12.01% | 19.18% | 7.22% |
Earnings & Valuation
This table compares Paycor HCM and ACI Worldwide”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Paycor HCM | $654.95 million | 3.71 | -$58.94 million | ($0.41) | -33.29 |
| ACI Worldwide | $1.53 billion | 3.45 | $121.51 million | $1.34 | 37.34 |
ACI Worldwide has higher revenue and earnings than Paycor HCM. Paycor HCM is trading at a lower price-to-earnings ratio than ACI Worldwide, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
36.8% of Paycor HCM shares are held by institutional investors. Comparatively, 94.7% of ACI Worldwide shares are held by institutional investors. 0.4% of Paycor HCM shares are held by company insiders. Comparatively, 1.0% of ACI Worldwide shares are held 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.
Risk & Volatility
Paycor HCM has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, ACI Worldwide has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.
Summary
ACI Worldwide beats Paycor HCM on 11 of the 14 factors compared between the two stocks.
About Paycor HCM
Paycor HCM, Inc., together with its subsidiaries, provides software-as-a-service (SaaS) human capital management (HCM) solutions for small and medium-sized businesses (SMBs) primarily in the United States. It offers cloud-native platform to address the comprehensive people management needs of SMB leaders. The company's SaaS based people management products include Cor HCM, a complete suite of HCM tools spanning HR, onboarding, payroll, compensation management, employee surveys, expenses, and reporting and analytics; Workforce Management, a solution with flexible time entry, overtime calculations, and scheduling capabilities with real-time payroll synchronization; Benefits Administration, a decision support solution to help leaders to streamline and optimize company's benefits administration; and Talent Management, an integrated compensation and performance management solution. It serves manufacturing, healthcare, restaurant, retail, professional services, nonprofit, and education industries through its direct sales teams. Paycor HCM, Inc. was founded in 1990 and is headquartered in Cincinnati, Ohio.
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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