Guidewire Software Inc (GWRE)vsSAP SE ADR (SAP)
GWRE
Guidewire Software Inc
$149.44
-0.86%
TECHNOLOGY · Cap: $12.81B
SAP
SAP SE ADR
$168.95
-1.20%
TECHNOLOGY · Cap: $217.55B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 2643% more annual revenue ($36.80B vs $1.34B). SAP leads profitability with a 19.5% profit margin vs 14.1%. SAP appears more attractively valued with a PEG of 0.79. GWRE earns a higher WallStSmart Score of 60/100 (C+).
GWRE
Buy60
out of 100
Grade: C+
SAP
Buy58
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
-88.8%
Fair Value
$104.04
Current Price
$168.95
$64.91 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 24.0% year-over-year
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Strong operational efficiency at 29.2%
Generating 1.1B 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
Moderate valuation
3.3% revenue growth
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 : SAP
The strongest argument for SAP centers on Market Cap, Altman Z-Score, Debt/Equity. Profitability is solid with margins at 19.5% and operating margin at 29.2%. PEG of 0.79 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 : SAP
The primary concerns for SAP are P/E Ratio, Revenue Growth.
Key Dynamics to Monitor
GWRE profiles as a growth stock while SAP is a value play — different risk/reward profiles.
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.
SAP generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
GWRE scores higher overall (60/100 vs 58/100) 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.
SAP SE ADR
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.
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