Kingsoft Cloud (NASDAQ:KC – Get Free Report) and ACI Worldwide (NASDAQ:ACIW – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
Profitability
This table compares Kingsoft Cloud and ACI Worldwide’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kingsoft Cloud | -28.41% | -19.13% | -7.90% |
| ACI Worldwide | 14.04% | 21.67% | 8.45% |
Risk & Volatility
Kingsoft Cloud has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500. Comparatively, ACI Worldwide has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kingsoft Cloud | $7.28 billion | 0.26 | -$306.53 million | ($1.20) | -6.18 |
| ACI Worldwide | $1.45 billion | 4.13 | $121.51 million | $2.11 | 27.08 |
ACI Worldwide has lower revenue, but higher earnings than Kingsoft Cloud. Kingsoft Cloud is trading at a lower price-to-earnings ratio than ACI Worldwide, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
13.4% of Kingsoft Cloud shares are held by institutional investors. Comparatively, 94.7% of ACI Worldwide shares are held by institutional investors. 14.2% of Kingsoft Cloud shares are held by insiders. Comparatively, 1.0% of ACI Worldwide shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Kingsoft Cloud and ACI Worldwide, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kingsoft Cloud | 0 | 1 | 5 | 1 | 3.00 |
| ACI Worldwide | 0 | 3 | 3 | 0 | 2.50 |
Kingsoft Cloud presently has a consensus price target of $4.62, indicating a potential downside of 37.74%. ACI Worldwide has a consensus price target of $49.50, indicating a potential downside of 13.37%. Given ACI Worldwide’s higher probable upside, analysts plainly believe ACI Worldwide is more favorable than Kingsoft Cloud.
Summary
ACI Worldwide beats Kingsoft Cloud on 9 of the 15 factors compared between the two stocks.
About Kingsoft Cloud
Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company's products portfolio includes cloud products, including infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) middleware, and software as a service (SaaS) applications that primarily consist of cloud computing, network, database, big data, security, storage, and delivery solutions. It offers research and development services, as well as enterprise digital solutions and related services. The company also provides public cloud services to customers in various verticals, including video, e-commerce, intelligent mobility, artificial intelligence, and mobile internet; and enterprise cloud services to customers in financial services, public service, and healthcare businesses. Kingsoft Cloud Holdings Limited was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.
About ACI Worldwide
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.
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