Head-To-Head Review: Medidata Solutions (NASDAQ:MDSO) vs. ACI Worldwide (NASDAQ:ACIW)

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

Earnings & Valuation

This table compares Medidata Solutions and ACI Worldwide’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Medidata Solutions $635.70 million 8.91 $51.92 million $0.96 94.75
ACI Worldwide $1.01 billion 3.81 $68.92 million $1.11 31.36

ACI Worldwide has higher revenue and earnings than Medidata Solutions. ACI Worldwide is trading at a lower price-to-earnings ratio than Medidata Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Medidata Solutions and ACI Worldwide, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medidata Solutions 0 10 1 0 2.09
ACI Worldwide 0 1 1 0 2.50

Medidata Solutions presently has a consensus target price of $84.38, indicating a potential downside of 7.23%. ACI Worldwide has a consensus target price of $32.50, indicating a potential downside of 6.64%. Given ACI Worldwide’s stronger consensus rating and higher possible upside, analysts clearly believe ACI Worldwide is more favorable than Medidata Solutions.

Profitability

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

Net Margins Return on Equity Return on Assets
Medidata Solutions 7.99% 9.28% 5.79%
ACI Worldwide 6.20% 8.39% 4.08%

Risk & Volatility

Medidata Solutions has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, ACI Worldwide has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Summary

ACI Worldwide beats Medidata Solutions on 6 of the 11 factors compared between the two stocks.

About Medidata Solutions

Medidata Solutions, Inc. provides cloud-based solutions for life sciences worldwide. It offers the Medidata Clinical Cloud, a platform, pioneering analytics, and clinical technology for the development and commercialization of new therapies. The company's platform solutions include data capture and management, and trial planning and management. It also provides professional services, such as implementation, sponsor enablement, strategic consulting, partner support, and e-learning and training. The company markets and sells its cloud-based solutions through a direct sales force and through relationships with channel and strategic partners. It serves pharmaceutical, biotechnology, medical device, and diagnostics companies; academic research centers, government, and other non-profit organizations; and other non-profit organizations; and contract research organizations and other entities engaged in clinical trials. The company was founded in 1999 and is headquartered in New York, New York.

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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