Guidewire Software Inc (GWRE)vsServiceNow Inc (NOW)
GWRE
Guidewire Software Inc
$136.06
-10.00%
TECHNOLOGY · Cap: $10.20B
NOW
ServiceNow Inc
$112.45
-0.90%
TECHNOLOGY · Cap: $131.65B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 883% more annual revenue ($13.96B vs $1.42B). NOW leads profitability with a 12.6% profit margin vs 11.3%. GWRE appears more attractively valued with a PEG of 0.67. NOW earns a higher WallStSmart Score of 54/100 (C-).
GWRE
Buy53
out of 100
Grade: C-
NOW
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+13.7%
Fair Value
$151.03
Current Price
$136.06
$14.97 discount
Margin of Safety
+82.6%
Fair Value
$613.35
Current Price
$112.45
$500.90 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Revenue surging 26.9% year-over-year
Large-cap with strong market position
Conservative balance sheet, low leverage
Revenue surging 22.1% year-over-year
Generating 1.5B in free cash flow
Areas to Watch
Trading at 8.6x book value
Premium valuation, high expectations priced in
Earnings declined 64.8%
Negative free cash flow — burning cash
Trading at 9.9x book value
2.3% earnings growth
Distress zone — elevated risk
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : GWRE
The strongest argument for GWRE centers on PEG Ratio, Revenue Growth. Revenue growth of 26.9% demonstrates continued momentum. PEG of 0.67 suggests the stock is reasonably priced for its growth.
Bull Case : NOW
The strongest argument for NOW centers on Market Cap, Debt/Equity, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 1.32 suggests the stock is reasonably priced for its growth.
Bear Case : GWRE
The primary concerns for GWRE are Price/Book, P/E Ratio, EPS Growth. A P/E of 65.9x 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 76.0x leaves little room for execution misses.
Key Dynamics to Monitor
GWRE carries more volatility with a beta of 0.92 — expect wider price swings.
GWRE is growing revenue faster at 26.9% — sustainability is the question.
NOW generates stronger free cash flow (1.5B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NOW scores higher overall (54/100 vs 53/100) and 22.1% 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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