Comprehensive Stock Comparison
Compare ACI Worldwide, Inc. (ACIW) vs Affirm Holdings, Inc. (AFRM) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | AFRM | 38.8% revenue growth vs ACIW's 10.4% |
| Value | ACIW | Lower P/E (15.7x vs 43.6x) |
| Quality / Margins | ACIW | 12.9% net margin vs AFRM's 9.7% |
| Stability / Safety | ACIW | Beta 1.11 vs AFRM's 2.41, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | AFRM | -26.8% vs ACIW's -30.8% |
| Efficiency (ROA) | ACIW | 7.3% ROA vs AFRM's 2.2%, ROIC 11.4% vs -0.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
ACI Worldwide is a software company that provides digital payment processing solutions to financial institutions, merchants, and billers globally. It generates revenue primarily through software licensing, maintenance fees, and transaction-based processing services — with its enterprise payments platform serving as the core revenue driver. The company's competitive advantage lies in its deep integration with legacy banking systems and its comprehensive, real-time payment processing capabilities that are difficult for new entrants to replicate.
Affirm operates a buy-now-pay-later platform that enables consumers to split purchases into installment payments at online and physical retailers. It generates revenue primarily from merchant fees — typically 3-6% of transaction value — and interest income from longer-term loans to consumers. Its key advantage is a transparent, fee-free model that builds consumer trust and a growing merchant network that creates a two-sided marketplace effect.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
ACIW leads in 3 of 6 categories — strongest in Valuation Metrics and Profitability & Efficiency. 2 categories are tied.
Financial Metrics (TTM)
AFRM is the larger business by revenue, generating $2.9B annually — 1.7x ACIW's $1.8B. Profitability is closely matched — net margins range from 12.9% (ACIW) to 9.7% (AFRM). On growth, ACIW holds the edge at +6.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ACIWACI Worldwide, In… | AFRMAffirm Holdings, … |
|---|---|---|
| RevenueTrailing 12 months | $1.8B | $2.9B |
| EBITDAEarnings before interest/tax | $427M | $420M |
| Net IncomeAfter-tax profit | $227M | $282M |
| Free Cash FlowCash after capex | $298M | $619M |
| Gross MarginGross profit ÷ Revenue | +49.0% | +59.5% |
| Operating MarginEBIT ÷ Revenue | +18.7% | +7.9% |
| Net MarginNet income ÷ Revenue | +12.9% | +9.7% |
| FCF MarginFCF ÷ Revenue | +16.9% | +21.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.3% | -62.1% |
| EPS Growth (YoY)Latest quarter vs prior year | -33.3% | +60.9% |
Valuation Metrics
At 18.4x trailing earnings, ACIW trades at a 94% valuation discount to AFRM's 313.2x P/E. On an enterprise value basis, ACIW's 11.1x EV/EBITDA is more attractive than AFRM's 158.0x.
| Metric | ACIWACI Worldwide, In… | AFRMAffirm Holdings, … |
|---|---|---|
| Market CapShares × price | $4.1B | $15.3B |
| Enterprise ValueMkt cap + debt − cash | $4.7B | $21.8B |
| Trailing P/EPrice ÷ TTM EPS | 18.37x | 313.20x |
| Forward P/EPrice ÷ next-FY EPS est. | 15.70x | 43.63x |
| PEG RatioP/E ÷ EPS growth rate | 0.65x | — |
| EV / EBITDAEnterprise value multiple | 11.09x | 158.00x |
| Price / SalesMarket cap ÷ Revenue | 2.32x | 4.74x |
| Price / BookPrice ÷ Book value/share | 2.74x | 5.22x |
| Price / FCFMarket cap ÷ FCF | 13.20x | 25.38x |
Profitability & Efficiency
ACIW delivers a 14.9% return on equity — every $100 of shareholder capital generates $15 in annual profit, vs $8 for AFRM. ACIW carries lower financial leverage with a 0.55x debt-to-equity ratio, signaling a more conservative balance sheet compared to AFRM's 2.56x. On the Piotroski fundamental quality scale (0–9), ACIW scores 7/9 vs AFRM's 6/9, reflecting strong financial health.
| Metric | ACIWACI Worldwide, In… | AFRMAffirm Holdings, … |
|---|---|---|
| ROE (TTM)Return on equity | +14.9% | +8.0% |
| ROA (TTM)Return on assets | +7.3% | +2.2% |
| ROICReturn on invested capital | +11.4% | -0.7% |
| ROCEReturn on capital employed | +13.7% | -0.9% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 6 |
| Debt / EquityFinancial leverage | 0.55x | 2.56x |
| Net DebtTotal debt minus cash | $644M | $6.5B |
| Cash & Equiv.Liquid assets | $196M | $1.4B |
| Total DebtShort + long-term debt | $840M | $7.9B |
| Interest CoverageEBIT ÷ Interest expense | 8.33x | 1.49x |
Total Returns (with DRIP)
A $10,000 investment in ACIW five years ago would be worth $10,081 today (with dividends reinvested), compared to $5,138 for AFRM. Over the past 12 months, AFRM leads with a -26.8% total return vs ACIW's -30.8%. The 3-year compound annual growth rate (CAGR) favors AFRM at 51.1% vs ACIW's 15.4% — a key indicator of consistent wealth creation.
| Metric | ACIWACI Worldwide, In… | AFRMAffirm Holdings, … |
|---|---|---|
| YTD ReturnYear-to-date | -13.1% | -36.5% |
| 1-Year ReturnPast 12 months | -30.8% | -26.8% |
| 3-Year ReturnCumulative with dividends | +53.5% | +244.9% |
| 5-Year ReturnCumulative with dividends | +0.8% | -48.6% |
| 10-Year ReturnCumulative with dividends | +112.6% | -51.7% |
| CAGR (3Y)Annualised 3-year return | +15.4% | +51.1% |
Risk & Volatility
ACIW is the less volatile stock with a 1.11 beta — it tends to amplify market swings less than AFRM's 2.41 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ACIW currently trades 68.2% from its 52-week high vs AFRM's 47.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ACIWACI Worldwide, In… | AFRMAffirm Holdings, … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.11x | 2.41x |
| 52-Week HighHighest price in past year | $58.14 | $100.00 |
| 52-Week LowLowest price in past year | $38.05 | $30.90 |
| % of 52W HighCurrent price vs 52-week peak | +68.2% | +47.0% |
| RSI (14)Momentum oscillator 0–100 | 42.8 | 34.4 |
| Avg Volume (50D)Average daily shares traded | 599K | 5.3M |
Analyst Outlook
Wall Street rates ACIW as "Buy" and AFRM as "Buy". Consensus price targets imply 79.7% upside for AFRM (target: $84) vs 76.4% for ACIW (target: $70).
| Metric | ACIWACI Worldwide, In… | AFRMAffirm Holdings, … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $70.00 | $84.40 |
| # AnalystsCovering analysts | 17 | 32 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 1 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +5.0% | +1.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 21 | Feb 26 | Change |
|---|---|---|---|
| ACI Worldwide, Inc. (ACIW) | 100 | 109.75 | +9.7% |
| Affirm Holdings, In… (AFRM) | 110.66 | 63.75 | -42.4% |
ACI Worldwide, Inc. (ACIW) returned +1% over 5 years vs Affirm Holdings, In… (AFRM)'s -49%. A $10,000 investment in ACIW 5 years ago would be worth $10,081 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| ACI Worldwide, Inc. (ACIW) | $1.0B | $1.8B | +75.0% |
| Affirm Holdings, In… (AFRM) | $264M | $3.2B | +1119.7% |
ACI Worldwide, Inc.'s revenue grew from $1.0B (2016) to $1.8B (2025) — a 6.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| ACI Worldwide, Inc. (ACIW) | 12.9% | 12.9% | -0.0% |
| Affirm Holdings, In… (AFRM) | -45.6% | 1.6% | +103.6% |
ACI Worldwide, Inc.'s net margin went from 13% (2016) to 13% (2025).
Chart 4P/E Ratio History — 8 Years
| Stock | 2018 | 2025 | Change |
|---|---|---|---|
| ACI Worldwide, Inc. (ACIW) | 46.9 | 22.1 | -52.9% |
ACI Worldwide, Inc. has traded in a 19x–67x P/E range over 8 years; current trailing P/E is ~18x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| ACI Worldwide, Inc. (ACIW) | 1.09 | 2.16 | +98.2% |
| Affirm Holdings, In… (AFRM) | -0.47 | 0.15 | +131.9% |
ACI Worldwide, Inc.'s EPS grew from $1.09 (2016) to $2.16 (2025) — a 8% CAGR.
Chart 6Free Cash Flow — 5 Years
ACI Worldwide, Inc. generated $310M FCF in 2025 (+77% vs 2021). Affirm Holdings, Inc. generated $602M FCF in 2025 (+382% vs 2021).
ACIW vs AFRM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ACIW or AFRM a better buy right now?
ACI Worldwide, Inc. (ACIW) offers the better valuation at 18.4x trailing P/E (15.7x forward), making it the more compelling value choice. Analysts rate ACI Worldwide, Inc. (ACIW) a "Buy" — based on 17 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — ACIW or AFRM?
On trailing P/E, ACI Worldwide, Inc. (ACIW) is the cheapest at 18.4x versus Affirm Holdings, Inc. at 313.2x. On forward P/E, ACI Worldwide, Inc. is actually cheaper at 15.7x.
03Which is the better long-term investment — ACIW or AFRM?
Over the past 5 years, ACI Worldwide, Inc. (ACIW) delivered a total return of +0.8%, compared to -48.6% for Affirm Holdings, Inc. (AFRM). A $10,000 investment in ACIW five years ago would be worth approximately $10K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ACIW returned +112.6% versus AFRM's -51.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ACIW or AFRM?
By beta (market sensitivity over 5 years), ACI Worldwide, Inc. (ACIW) is the lower-risk stock at 1.11β versus Affirm Holdings, Inc.'s 2.41β — meaning AFRM is approximately 118% more volatile than ACIW relative to the S&P 500. On balance sheet safety, ACI Worldwide, Inc. (ACIW) carries a lower debt/equity ratio of 55% versus 3% for Affirm Holdings, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — ACIW or AFRM?
ACI Worldwide, Inc. (ACIW) is the more profitable company, earning 12.9% net margin versus 1.6% for Affirm Holdings, Inc. — meaning it keeps 12.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ACIW leads at 18.7% versus -2.7% for AFRM. At the gross margin level — before operating expenses — AFRM leads at 67.5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is ACIW or AFRM more undervalued right now?
On forward earnings alone, ACI Worldwide, Inc. (ACIW) trades at 15.7x forward P/E versus 43.6x for Affirm Holdings, Inc. — 27.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AFRM: 79.7% to $84.40.
07Which pays a better dividend — ACIW or AFRM?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is ACIW or AFRM better for a retirement portfolio?
For long-horizon retirement investors, ACI Worldwide, Inc. (ACIW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.11), +112.6% 10Y return). Affirm Holdings, Inc. (AFRM) carries a higher beta of 2.41 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ACIW: +112.6%, AFRM: -51.7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between ACIW and AFRM?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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