ACIW vs JKHY

For growth investors, ACI Worldwide, Inc.

(ACIW) is the stronger pick with 10. 4% revenue growth year-over-year, versus 7. 2% for Jack Henry & Associates, Inc. (JKHY). ACI Worldwide, Inc. (ACIW) offers the better valuation at 20. 0x trailing P/E (17. 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.

On trailing P/E, ACI Worldwide, Inc.

(ACIW) is the cheapest at 20. 0x versus Jack Henry & Associates, Inc. at 22. 9x. On forward P/E, ACI Worldwide, Inc. is actually cheaper at 17. 7x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: ACI Worldwide, Inc. wins at 0. 62x versus Jack Henry & Associates, Inc. 's 2. 11x — 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 +15. 2%, compared to -3. 2% for Jack Henry & Associates, Inc. (JKHY). Over 10 years, the gap is even starker: ACIW returned +119. 1% versus JKHY's +92. 3%. 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), Jack Henry & Associates, Inc.

(JKHY) is the lower-risk stock at 0. 28β versus ACI Worldwide, Inc. 's 1. 03β — meaning ACIW is approximately 262% more volatile than JKHY relative to the S&P 500.

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

(ACIW) is pulling ahead at 10. 4% versus 7. 2% for Jack Henry & Associates, Inc. (JKHY). On earnings-per-share growth, the picture is similar: Jack Henry & Associates, Inc. grew EPS 19. 3% year-over-year, compared to 13. 1% for ACI Worldwide, Inc.. Over a 3-year CAGR, ACIW leads at 7. 4% 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.

Jack Henry & Associates, Inc.

(JKHY) is the more profitable company, earning 19. 2% net margin versus 12. 9% for ACI Worldwide, Inc. — meaning it keeps 19. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: JKHY leads at 23. 9% versus 18. 7% for ACIW. At the gross margin level — before operating expenses — ACIW leads at 49. 0%, 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, ACI Worldwide, Inc. (ACIW) is the more undervalued stock at a PEG of 0. 62x versus Jack Henry & Associates, Inc. 's 2. 11x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, ACI Worldwide, Inc. (ACIW) trades at 17. 7x forward P/E versus 21. 3x for Jack Henry & Associates, Inc. — 3. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ACIW: 61. 8% to $70. 00.

In this comparison, JKHY (1.

6% yield) pays a dividend. ACIW does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Jack Henry & Associates, Inc.

(JKHY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 28), 1. 6% yield). Both have compounded well over 10 years (JKHY: +92. 3%, ACIW: +119. 1%), 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.

JKHY 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.