ACI Worldwide, Inc. (ACIW) vs WEX Inc. (WEX)

ACI Worldwide, Inc. and WEX Inc. are both Software Infrastructure companies. WEX Inc. is the larger, with a market value of $6.3B against $5.0B — 1.3× the size. WEX Inc. trades at the lower P/E: 17.5× against 22.5×. WEX Inc. grew revenue faster over the last twelve months: 7.46% against 7.03%. WEX Inc. has the higher net margin (12.6% vs 12.4%) and the lower return on invested capital (0.00% vs 9.84%). Across the 22 metrics below, WEX Inc. leads on 12 and ACI Worldwide, Inc. on 10.

Valuation

Metric ACIW WEX Software Infrastructure median
P/E 22.50 17.53 28.02
P/S 2.76 2.22 3.07
P/B 3.36 4.60 3.36
Price to free cash flow 17.65 123.97 17.12
EV/EBITDA 12.68 3.80 14.91
EV/Sales 3.12 1.42 3.03
Earnings yield 4.44% 5.70% 0.13%
Free cash flow yield 5.67% 0.81% 1.15%

Profitability

Metric ACIW WEX Software Infrastructure median
Gross margin 49.08% 59.61% 61.23%
Operating margin 18.61% 25.47% 0.00%
Net margin 12.40% 12.56% 0.00%
Free cash flow margin 15.64% 1.79% 1.67%
Return on equity 15.62% 30.19% 0.59%
Return on assets 7.24% 2.25% 0.00%
Return on invested capital 9.84% 0.00% 0.00%

Growth

Metric ACIW WEX Software Infrastructure median
Revenue growth (TTM) 7.03% 7.46% 13.41%
EPS growth (last fiscal year) 13.09% 12.93% —
Revenue growth, 5-year CAGR 6.34% 11.27% 15.81%
Net income growth, 5-year CAGR 25.55% 0.00% 0.00%

Health

Metric ACIW WEX Software Infrastructure median
Debt to equity 0.55 2.62 0.06
Current ratio 1.58 1.04 1.55
Net debt to EBITDA 1.42 (2.49) 0.08

Dividend

Metric ACIW WEX Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric ACIW WEX Software Infrastructure median
Market cap 5.01b 6.32b 835.96m

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