Head-To-Head Contrast: ACI Worldwide (NASDAQ:ACIW) versus Bitfarms (NASDAQ:BITF)

ACI Worldwide (NASDAQ:ACIW) and Bitfarms (NASDAQ:BITF) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Volatility and Risk

ACI Worldwide has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Bitfarms has a beta of 3.77, indicating that its share price is 277% more volatile than the S&P 500.

Institutional & Insider Ownership

94.7% of ACI Worldwide shares are owned by institutional investors. Comparatively, 20.6% of Bitfarms shares are owned by institutional investors. 1.2% of ACI Worldwide shares are owned by insiders. Comparatively, 9.5% of Bitfarms shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares ACI Worldwide and Bitfarms”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACI Worldwide	$1.82 billion	2.84	$226.66 million	$2.18	23.46
Bitfarms	$229.28 million	7.76	-$138.65 million	($0.23)	-12.83

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ACI Worldwide	12.40%	17.62%	8.47%
Bitfarms	-48.26%	-4.48%	-3.71%

Analyst Recommendations

This is a summary of current ratings and price targets for ACI Worldwide and Bitfarms, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACI Worldwide	0	1	1	1	3.00
Bitfarms	1	1	3	0	2.40

ACI Worldwide currently has a consensus price target of $66.00, suggesting a potential upside of 29.02%. Bitfarms has a consensus price target of $3.90, suggesting a potential upside of 32.20%. Given Bitfarms’ higher probable upside, analysts clearly believe Bitfarms is more favorable than ACI Worldwide.

Summary

ACI Worldwide beats Bitfarms on 10 of the 15 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 Bitfarms

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.