IREN (NASDAQ:IREN – Get Free Report) and Guidewire Software (NYSE:GWRE – Get Free Report) are both large-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.
Profitability
This table compares IREN and Guidewire Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| IREN | -99.38% | -15.46% | -5.51% |
| Guidewire Software | 9.44% | 12.66% | 6.73% |
Analyst Ratings
This is a summary of recent ratings and target prices for IREN and Guidewire Software, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IREN | 1 | 3 | 17 | 1 | 2.82 |
| Guidewire Software | 0 | 4 | 12 | 0 | 2.75 |
Insider & Institutional Ownership
41.1% of IREN shares are owned by institutional investors. 5.0% of IREN shares are owned by insiders. Comparatively, 0.5% of Guidewire Software shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares IREN and Guidewire Software”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| IREN | $707.01 million | 26.02 | -$702.62 million | ($2.34) | -19.95 |
| Guidewire Software | $1.48 billion | 8.13 | $139.28 million | $1.63 | 88.41 |
Guidewire Software has higher revenue and earnings than IREN. IREN is trading at a lower price-to-earnings ratio than Guidewire Software, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
IREN has a beta of 4.28, indicating that its stock price is 328% more volatile than the S&P 500. Comparatively, Guidewire Software has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.
Summary
IREN beats Guidewire Software on 8 of the 15 factors compared between the two stocks.
About IREN
IREN Limited, formerly known as Iris Energy Limited, owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.
About Guidewire Software
Guidewire Software, Inc. provides a platform for property and casualty (P&C) insurers worldwide. The company offers Guidewire InsuranceSuite Cloud, such as PolicyCenter Cloud, BillingCenter Cloud, and ClaimCenter Cloud applications. It also provides Guidewire InsuranceNow, a cloud-based platform that offers policy, billing, and claims management functionality to insurers; and Guidewire InsuranceSuite for Self-Managed. In addition, the company offers Guidewire Rating Management to manage the pricing of insurance products; and Guidewire Reinsurance Management to use rules-based logic to execute reinsurance strategy through underwriting and claims processes. Further, it provides Guidewire Underwriting Management, a cloud-based integrated business application; Guidewire AppReader, a submission intake management solution; Guidewire ClaimCenter Package for the London market supports the claims workflow used by London Market insurers and brokers; Guidewire Digital Engagement Applications, which enable insurers to provide digital experiences to customers, agents, vendors, and field personnel through their device of choice; and Guidewire for Salesforce to provide customer information regarding policies and claims. Additionally, the company offers Guidewire Predict, a P&C-specific machine-learning platform; Guidewire HazardHub that allows insurers to understand, assess, price, and manage property risk; Guidewire Canvas, Guidewire Compare, and Guidewire Explore cloud-native applications; and Guidewire Cyence, a cyber-risk economic modeling product. The company was incorporated in 2001 and is headquartered in San Mateo, California.
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