Guidewire Software Inc (GWRE)vsServiceNow Inc (NOW)
GWRE
Guidewire Software Inc
$149.44
-0.86%
TECHNOLOGY · Cap: $12.81B
NOW
ServiceNow Inc
$103.06
+0.56%
TECHNOLOGY · Cap: $110.42B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 890% more annual revenue ($13.28B vs $1.34B). GWRE leads profitability with a 14.1% profit margin vs 13.2%. NOW appears more attractively valued with a PEG of 1.06. GWRE earns a higher WallStSmart Score of 60/100 (C+).
GWRE
Buy60
out of 100
Grade: C+
NOW
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-25.5%
Fair Value
$103.90
Current Price
$149.44
$45.54 premium
Margin of Safety
-404.2%
Fair Value
$20.44
Current Price
$103.06
$82.62 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 24.0% year-over-year
Large-cap with strong market position
Revenue surging 20.7% year-over-year
Generating 2.0B in free cash flow
Areas to Watch
Trading at 8.4x book value
2.3% earnings growth
Premium valuation, high expectations priced in
Distress zone — elevated risk
Trading at 8.3x book value
3.4% earnings growth
Distress zone — elevated risk
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : GWRE
The strongest argument for GWRE centers on Revenue Growth. Revenue growth of 24.0% demonstrates continued momentum. PEG of 1.11 suggests the stock is reasonably priced for its growth.
Bull Case : NOW
The strongest argument for NOW centers on Market Cap, Revenue Growth, Free Cash Flow. Revenue growth of 20.7% demonstrates continued momentum. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bear Case : GWRE
The primary concerns for GWRE are Price/Book, EPS Growth, P/E Ratio. A P/E of 67.9x leaves little room for execution misses.
Bear Case : NOW
The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 62.7x leaves little room for execution misses.
Key Dynamics to Monitor
GWRE carries more volatility with a beta of 1.09 — expect wider price swings.
GWRE is growing revenue faster at 24.0% — sustainability is the question.
NOW generates stronger free cash flow (2.0B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GWRE scores higher overall (60/100 vs 56/100) and 24.0% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Guidewire Software Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Guidewire Software, Inc. provides software products for property and casualty insurers around the world. The company is headquartered in San Mateo, California.
ServiceNow Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.
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