Financial Contrast: nCino (NASDAQ:NCNO) & ACI Worldwide (NASDAQ:ACIW)

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

Insider and Institutional Ownership

94.8% of nCino shares are held by institutional investors. Comparatively, 94.7% of ACI Worldwide shares are held by institutional investors. 1.9% of nCino shares are held by insiders. Comparatively, 1.2% of ACI Worldwide shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

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%

Earnings & Valuation

This table compares nCino and ACI Worldwide”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
nCino	$594.78 million	3.98	$5.18 million	$0.30	74.63
ACI Worldwide	$1.76 billion	3.52	$226.66 million	$1.62	38.18

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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for nCino and ACI Worldwide, as reported 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 currently has a consensus price target of $23.42, indicating a potential upside of 4.59%. ACI Worldwide has a consensus price target of $61.00, indicating a potential downside of 1.37%. Given nCino’s higher probable upside, equities research analysts plainly believe nCino is more favorable than ACI Worldwide.

Volatility and Risk

nCino has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, ACI Worldwide has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Summary

ACI Worldwide beats nCino on 8 of the 14 factors compared between the two stocks.

About nCino

nCino, Inc. is a financial technology company that provides cloud-based software to banks, credit unions and other financial institutions. Its nCino Bank Operating System supports digital banking operations, helping institutions manage processes and customer relationships through a connected platform. The company’s products and services include commercial, small-business and consumer lending tools, digital account opening, deposit account management, mortgage technology and solutions for managing customer relationships and loan workflows.

About ACI Worldwide

ACI Worldwide is a financial technology company that develops software for electronic payments. Its products help banks, credit unions, merchants, billers and government organizations process and manage payments across digital and traditional channels. The company’s offerings include real-time payment solutions, digital banking and bill-payment services, merchant payment processing, and tools for detecting and managing fraud. ACI’s software supports payment activity from initiation through processing and settlement.