Comparing Guidewire Software (GWRE) and The Competition

Guidewire Software (NYSE: GWRE) is one of 97 publicly-traded companies in the “Enterprise Software” industry, but how does it compare to its rivals? We will compare Guidewire Software to similar businesses based on the strength of its analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Risk & Volatility

Guidewire Software has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Guidewire Software’s rivals have a beta of 1.13, meaning that their average share price is 13% more volatile than the S&P 500.

Insider and Institutional Ownership

59.9% of shares of all “Enterprise Software” companies are owned by institutional investors. 1.0% of Guidewire Software shares are owned by insiders. Comparatively, 23.6% of shares of all “Enterprise Software” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Guidewire Software and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Guidewire Software 4.13% 3.67% 3.14%
Guidewire Software Competitors -24.56% -412.83% -8.08%

Earnings and Valuation

This table compares Guidewire Software and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Guidewire Software $514.28 million $45.34 million 277.29
Guidewire Software Competitors $1.27 billion $344.87 million 33.67

Guidewire Software’s rivals have higher revenue and earnings than Guidewire Software. Guidewire Software is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations for Guidewire Software and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guidewire Software 0 3 6 1 2.80
Guidewire Software Competitors 514 2400 4037 134 2.54

Guidewire Software presently has a consensus target price of $77.29, indicating a potential downside of 0.46%. As a group, “Enterprise Software” companies have a potential upside of 8.46%. Given Guidewire Software’s rivals higher probable upside, analysts clearly believe Guidewire Software has less favorable growth aspects than its rivals.

Summary

Guidewire Software beats its rivals on 8 of the 13 factors compared.

About Guidewire Software

Guidewire Software, Inc. is a provider of software products for property and casualty (P&C) insurers. The Company’s software serves as a technology platform for P&C insurance carriers. The Company’s InsurancePlatform consists of three elements: core transaction processing, data management and analytics, and digital engagement. The Company sells its products to a range of global P&C insurance carriers ranging from global insurers to national carriers to regional carriers. The Company’s core transaction processing includes Guidewire InsuranceSuite, Guidewire PolicyCenter, Guidewire ClaimCenter, Guidewire BillingCenter and InsuranceSuite Add-on Modules. The Company’s data management and analytics includes Guidewire DataHub, Guidewire InfoCenter, Guidewire Live and Guidewire Predictive Analytics. The Company’s digital engagement includes Guidewire Digital Portals.

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