Critical Analysis: Bitfarms (NASDAQ:BITF) & ACI Worldwide (NASDAQ:ACIW)

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

Volatility & Risk

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for ACI Worldwide and Bitfarms, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ACI Worldwide 0 2 1 1 2.75
Bitfarms 1 1 3 0 2.40

ACI Worldwide currently has a consensus price target of $61.00, indicating a potential upside of 15.53%. Bitfarms has a consensus price target of $3.90, indicating a potential upside of 68.83%. Given Bitfarms’ higher possible upside, analysts plainly believe Bitfarms is more favorable than ACI Worldwide.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ACI Worldwide $1.76 billion 3.03 $226.66 million $2.18 24.22
Bitfarms $229.28 million 6.07 -$138.65 million ($0.23) -10.04

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%

Insider & Institutional Ownership

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

Summary

ACI Worldwide beats Bitfarms on 10 of the 15 factors compared between the two stocks.

About ACI Worldwide

(Get Free Report)

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

(Get Free Report)

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.

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