Compare ACI Worldwide, Inc. (ACIW) vs Toast, Inc. (TOST) Stock

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.

On trailing P/E, ACI Worldwide, Inc. (ACIW) is the cheapest at 18.4x versus Toast, Inc. at 48.8x. On forward P/E, ACI Worldwide, Inc. is actually cheaper at 15.7x.

Over the past 5 years, ACI Worldwide, Inc. (ACIW) delivered a total return of +0.8%, compared to -56.3% for Toast, Inc. (TOST). 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 TOST's -56.3%. 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), ACI Worldwide, Inc. (ACIW) is the lower-risk stock at 1.11β versus Toast, Inc.'s 1.51β — meaning TOST is approximately 37% more volatile than ACIW relative to the S&P 500. On balance sheet safety, Toast, Inc. (TOST) carries a lower debt/equity ratio of 2% versus 55% for ACI Worldwide, Inc. — giving it more financial flexibility in a downturn.

ACI Worldwide, Inc. (ACIW) is the more profitable company, earning 12.9% net margin versus 5.6% for Toast, 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 5.0% for TOST. 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.

On forward earnings alone, ACI Worldwide, Inc. (ACIW) trades at 15.7x forward P/E versus 22.4x for Toast, Inc. — 6.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ACIW: 76.4% to $70.00.

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.

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). Toast, Inc. (TOST) carries a higher beta of 1.51 — 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%, TOST: -56.3%), 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. 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.