The shares of ACI Worldwide, Inc. (NASDAQ:ACIW) and Sysco Corporation (NYSE:SYY) were among the active stocks of the last trading sessions. ACI Worldwide, Inc. (NASDAQ:ACIW) soared to 11.5% closing at the price of $29 whereas the shares of Sysco Corporation (NYSE:SYY) soared 0.17% with the increase of 0.11 points closing at the price of $66.56. ACI Worldwide, Inc. has currently increase 28.6% in its stock over the period of 6-months while its rival Sysco Corporation added 5.95% in the previous 6-months.
Now we have to analyze the facts that if the stocks were worthy off investors’ money? The facts to analyze here are risks, profitability, returns and price trends.
Returns and Profitability
Profitability and returns are the main reason of investment, the investors are looking for profits that they get and return they should expect over the period of time.
The first and foremost return that is considered while making an investment is the ROI or Return on Investment. The ROI is the ratio between the profit against the cost of investment. Currently the ROI of ACI Worldwide, Inc. (NASDAQ:ACIW) is 5.7% while the ROI of Sysco Corporation (NYSE:SYY) is 16.9%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, ACIW’s EBITDA Margin is 24.6 whereas SYY’s is 13.81.
Both the profitability ratios suggest a mixed sentiment for ACI Worldwide, Inc. (NASDAQ:ACIW) and Sysco Corporation (NYSE:SYY).
EPS & Surprise Factor
ACI Worldwide, Inc. (NASDAQ:ACIW) reported $0.25/share EPS for the previous quarter where analysts were predicting an EPS to be $-0.02/share Thus beating the analyst Estimates with a Surprise Factor of 1350 Percent. While, Sysco Corporation (NYSE:SYY) reported EPS of $0.91/share in the last quarter. The analysts projected EPS of $0.92/share depicting a Surprise of -1.1 Percent.
Taking a look at Earnings per Share, ACI Worldwide, Inc. tends to be beating the analyst estimates more than Sysco Corporation. so ACIW is more profitable than SYY.
Technical Analysis of ACI Worldwide, Inc. & Sysco Corporation
Moving average convergence divergence (MACD) shows that ACI Worldwide, Inc. (NASDAQ:ACIW) is on a PRICE RELATIVITY trend While Sysco Corporation (NYSE:SYY) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the ACI Worldwide, Inc. was in BULLISH territory and Sysco Corporation was in BEARISH territory.
ACIW’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While SYY’s candle is BULLISH with HIGH.
EPS Growth Rate: ACIW’s 12% versus SYY’s 12.58%
Another shareholder value can be analyzed through the EPS growth rate; the next 5 years EPS growth rate is predicted by the analysts after the analyzing the previous trends. The next 5 year EPS growth rate of ACI Worldwide, Inc. (NASDAQ:ACIW) is predicted at 12% while Sysco Corporation (NYSE:SYY) stands at 12.58%. These numbers suggest that SYY is more suitable investment in terms of EPS growth rate.
Financial Risk and Liquidity Concerns
The current ratio and the debt ratio are the two ratios that show the investor how quickly the company is able to payout its debt and how quickly it can cover its obligations. The current ratio of ACIW stands at 1.5 while SYY is at 1.2 whereas the debt ratio of the prior is 0.72 while the debt ratio of the later is 3.09.
The values of the both ratios suggest that one is more liquid and other investment is more risk free.
While making an investment, another main factor to consider before investing is the analyst recommendation on the scale of 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is Sell and 5 is strong sell. Analyst recommend 2 for ACIW and 2.4 for SYY which means ACIW has Buy rating whereas SYY has Hold rating.
Another recommendation of analyst that is to be considered worthy is the price target. The mare price or price trend does not suggest the suitability of a stock. The price target set by analyst is also to be considered while investing as it suggests to what extent the stock will rise or fall in the near future. The price target set for ACIW is $30.4 which is 4.61% of its current price while SYY has price target of 74.08 which is 10.15% of its current price.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
ACIW currently has price to earning P/E ratio of 91.48 whereas SYY has 25.85 while the forward P/E ratio for the prior stands at 34 and for the later it depicts the value of 17.22.
The price to Book P/B for ACIW is 3.56, Price to Sale is at 3.35 and for SYY these ratios stand at 13.84 and 0.59.