ACIW vs EVTC

For growth investors, ACI Worldwide, Inc.

(ACIW) is the stronger pick with 10. 4% revenue growth year-over-year, versus 10. 2% for EVERTEC, Inc. (EVTC). EVERTEC, Inc. (EVTC) offers the better valuation at 10. 6x trailing P/E (6. 0x 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.

On trailing P/E, EVERTEC, Inc.

(EVTC) is the cheapest at 10. 6x versus ACI Worldwide, Inc. at 21. 6x. On forward P/E, EVERTEC, Inc. is actually cheaper at 6. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: EVERTEC, Inc. wins at 0. 66x versus ACI Worldwide, Inc. 's 0. 67x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, ACI Worldwide, Inc.

(ACIW) delivered a total return of +21. 7%, compared to -43. 3% for EVERTEC, Inc. (EVTC). Over 10 years, the gap is even starker: ACIW returned +131. 7% versus EVTC's +89. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), EVERTEC, Inc.

(EVTC) is the lower-risk stock at 0. 76β versus ACI Worldwide, Inc. 's 1. 03β — meaning ACIW is approximately 35% more volatile than EVTC relative to the S&P 500. On balance sheet safety, ACI Worldwide, Inc. (ACIW) carries a lower debt/equity ratio of 57% versus 158% for EVERTEC, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), ACI Worldwide, Inc.

(ACIW) is pulling ahead at 10. 4% versus 10. 2% for EVERTEC, Inc. (EVTC). On earnings-per-share growth, the picture is similar: EVERTEC, Inc. grew EPS 27. 2% year-over-year, compared to 13. 1% for ACI Worldwide, Inc.. Over a 3-year CAGR, EVTC leads at 14. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

EVERTEC, Inc.

(EVTC) is the more profitable company, earning 15. 2% net margin versus 12. 9% for ACI Worldwide, Inc. — meaning it keeps 15. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: EVTC leads at 20. 0% versus 18. 7% for ACIW. At the gross margin level — before operating expenses — EVTC leads at 49. 7%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, EVERTEC, Inc. (EVTC) is the more undervalued stock at a PEG of 0. 66x versus ACI Worldwide, Inc. 's 0. 67x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, EVERTEC, Inc. (EVTC) trades at 6. 0x forward P/E versus 19. 0x for ACI Worldwide, Inc. — 13. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for EVTC: 58. 4% to $37. 00.

In this comparison, EVTC (0.

8% yield) pays a dividend. ACIW does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, EVERTEC, Inc.

(EVTC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 76), 0. 8% yield). Both have compounded well over 10 years (EVTC: +89. 5%, ACIW: +131. 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.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: ACIW is a small-cap quality compounder stock; EVTC is a small-cap deep-value stock. EVTC pays a dividend while ACIW does not, making them suitable for different income and tax situations. 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.