ACI Worldwide (NASDAQ:ACIW) and Cheetah Mobile (NASDAQ:CMCM) Financial Survey

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

Profitability

This table compares Cheetah Mobile and ACI Worldwide’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cheetah Mobile 28.98% 22.27% 15.38%
ACI Worldwide 8.42% 10.48% 3.99%

Volatility & Risk

Cheetah Mobile has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500. Comparatively, ACI Worldwide has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Institutional and Insider Ownership

4.4% of Cheetah Mobile shares are owned by institutional investors. 17.1% of Cheetah Mobile shares are owned by insiders. Comparatively, 4.5% of ACI Worldwide shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Cheetah Mobile and ACI Worldwide, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cheetah Mobile 2 1 0 0 1.33
ACI Worldwide 0 1 2 0 2.67

Cheetah Mobile presently has a consensus target price of $3.17, suggesting a potential downside of 10.29%. ACI Worldwide has a consensus target price of $41.67, suggesting a potential upside of 15.90%. Given ACI Worldwide’s stronger consensus rating and higher probable upside, analysts plainly believe ACI Worldwide is more favorable than Cheetah Mobile.

Earnings & Valuation

This table compares Cheetah Mobile and ACI Worldwide’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cheetah Mobile $724.56 million 0.70 $169.72 million $1.18 2.99
ACI Worldwide $1.01 billion 4.12 $68.92 million N/A N/A

Cheetah Mobile has higher earnings, but lower revenue than ACI Worldwide.

Summary

Cheetah Mobile beats ACI Worldwide on 7 of the 13 factors compared between the two stocks.

About Cheetah Mobile

Cheetah Mobile Inc. operates as a mobile Internet company worldwide. The company's utility products include Clean Master, a junk file cleaning, memory boosting, and privacy protection tool for mobile devices; Security Master, an anti-virus and security application for mobile devices; Battery Doctor, a power optimization tool for mobile devices; Cheetah Browser, a Web browser for PCs and mobile devices; CM Browser, a mobile browser to protect users from malicious threats; and CM Launcher, which provides personalized experience in using smart phones. Its utility products also comprise Cheetah Keyboard, an artificial intelligence (AI)-enabled application; Photo Grid, a photo collage application for mobile devices; CM Locker, a lock screen with notifications and security; Duba Anti-virus, an Internet security application for PC and mobile devices; and SafeWallet, a mobile digital wallet. In addition, the company offers Live.me, a live video streaming application; and Cheez, an interactive short video application. Further, it provides mobile games comprising Piano Tiles 2, Rolling Sky, Dancing Line, Arrow.io, Tap Tap Fish, and Tap Tap Dash; and Cheetah Voicepod, an AI-based smart speaker. Additionally, the company offers mobile advertising platform; duba.com personal start page that aggregates online resources and provides users access to their online destinations; and cloud-based data analytics engines, as well as mobile advertising, and Web and mobile games publisher services. It serves direct advertisers that include mobile application developers, mobile game developers, and e-commerce companies, as well as search engines and partnering mobile advertising networks. The company was formerly known as Kingsoft Internet Software Holdings Limited and changed its name to Cheetah Mobile Inc. in March 2014. Cheetah Mobile Inc. was incorporated in 2009 and is headquartered in Beijing, People's Republic of China.

About ACI Worldwide

ACI Worldwide, Inc. provides software products and services for facilitating electronic payments to banks, financial intermediaries, merchants, and corporates worldwide. It offers UP Retail Payments solution that enables banks to accept, authorize, route, and secure payment transactions; and ACI Card and Merchant Management solutions, including credit, debit, smart card, and prepaid card issuance and management, as well as merchant account management and settlement. The company also provides UP Immediate Payments solution, which provides connectivity to country-level real-time payment schemes and create various products; and UP Real-Time Payments solution that allows banks to address RTGS, SWIFT messaging, ACH, and real-time payments. In addition, it offers Postilion; ACI PAY.ON Payments Gateway; ACI ReD Shield, a real-time fraud prevention solution, as well as UP eCommerce Payments solution; and UP Payments Risk Management solution and ACI Universal Online Banker platform. Further, the company provides UP Bill Payment solutions, which enable customers to present bills and collect payments from consumers electronically through a single and integrated platform that controls bill payments operation. Additionally, it offers bill presentment and payment collection services to consumer finance, insurance, healthcare, higher education, tax, and utility sectors; and implementation services, including installations, product configurations, and custom software modifications; business and technical consultancy, and on-site support services, as well as distributes or acts as a sales agent for software developed by third parties. The company markets its products and services under the ACI Worldwide, ACI Universal Payments, and ACI UP brand names. The company was formerly known as Transaction Systems Architects, Inc. and changed its name to ACI Worldwide, Inc. in July 2007. ACI Worldwide, Inc. was founded in 1975 and is headquartered in Naples, Florida.

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