LogMeIn (NASDAQ:LOGM) and ACI Worldwide (NASDAQ:ACIW) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.
Earnings & Valuation
This table compares LogMeIn and ACI Worldwide’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|LogMeIn||$1.20 billion||3.14||$74.37 million||$4.55||16.69|
|ACI Worldwide||$1.01 billion||3.72||$68.92 million||$1.11||30.59|
LogMeIn has higher revenue and earnings than ACI Worldwide. LogMeIn is trading at a lower price-to-earnings ratio than ACI Worldwide, indicating that it is currently the more affordable of the two stocks.
LogMeIn pays an annual dividend of $1.30 per share and has a dividend yield of 1.7%. ACI Worldwide does not pay a dividend. LogMeIn pays out 28.6% of its earnings in the form of a dividend.
Risk and Volatility
LogMeIn has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, ACI Worldwide has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.
Institutional & Insider Ownership
97.1% of LogMeIn shares are owned by institutional investors. 2.4% of LogMeIn shares are owned by insiders. Comparatively, 4.5% of ACI Worldwide shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares LogMeIn and ACI Worldwide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for LogMeIn and ACI Worldwide, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
LogMeIn currently has a consensus price target of $95.89, indicating a potential upside of 26.24%. ACI Worldwide has a consensus price target of $32.50, indicating a potential downside of 4.27%. Given LogMeIn’s higher possible upside, equities research analysts clearly believe LogMeIn is more favorable than ACI Worldwide.
LogMeIn, Inc. provides a portfolio of cloud-based communication and collaboration, identity and access, and customer engagement and support solutions. It enables people to connect with each other worldwide to drive meaningful interactions, deepen relationships, and create better outcomes for individuals and businesses. The company offers GoToConference, a video and audio conferencing solution; GoToMeeting, a product for online meetings, sales demonstrations, and collaborative gatherings; GoToTraining, an online training product for interactive training sessions; GoToWebinar, a do-it-yourself Webinar product for organizations; Grasshopper telephony solution; Jive, a cloud-based phone service; join.me, join.me pro, and join.me business, which are online meeting and screen sharing services; and OpenVoice, a reservation-less audio conferencing service. It also provides Bold360 and BoldChat, an omni-channel engagement platform and live chat service respectively; Bold360 ai, an automated customer service; RescueAssist, GoToAssist Corporate, and GoToAssist Seeit, which are easy-to-use cloud-based remote support solutions; LogMeIn Rescue, a remote support and customer care service; and LogMeIn Rescue+Mobile and Rescue Lens that are Web-based remote support services. In addition, the company offers LogMeIn Central, a Web-based management console; GoToMyPC that enables mobile workstyles; LogMeIn Pro, a remote access service; and LastPass, a password management and single sign on solution. It serves enterprise customers, small and medium businesses, IT service providers, mobile carriers, customer service centers, OEMs, and consumers. The company was formerly known as 3am Labs, Inc. and changed its name to LogMeIn, Inc. in March 2006. LogMeIn, Inc. was founded in 2003 and is headquartered in Boston, Massachusetts with additional locations in North America, South America, Europe, Asia, and Australia.
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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