Contrasting Guidewire Software (NYSE:GWRE) & Global Business Travel Group (NYSE:GBTG)

Global Business Travel Group (NYSE:GBTGGet Free Report) and Guidewire Software (NYSE:GWREGet Free Report) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Institutional & Insider Ownership

82.5% of Global Business Travel Group shares are held by institutional investors. 1.7% of Global Business Travel Group shares are held by insiders. Comparatively, 0.5% of Guidewire Software shares are held 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Global Business Travel Group and Guidewire Software, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Business Travel Group 1 2 3 0 2.33
Guidewire Software 1 4 11 0 2.63

Global Business Travel Group currently has a consensus price target of $10.25, indicating a potential upside of 105.99%. Guidewire Software has a consensus price target of $259.77, indicating a potential upside of 112.93%. Given Guidewire Software’s stronger consensus rating and higher possible upside, analysts clearly believe Guidewire Software is more favorable than Global Business Travel Group.

Valuation & Earnings

This table compares Global Business Travel Group and Guidewire Software”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Global Business Travel Group $2.42 billion 1.08 -$138.00 million $0.02 248.80
Guidewire Software $1.20 billion 8.63 $69.80 million $1.05 116.19

Guidewire Software has lower revenue, but higher earnings than Global Business Travel Group. Guidewire Software is trading at a lower price-to-earnings ratio than Global Business Travel Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Global Business Travel Group and Guidewire Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Business Travel Group 0.40% 3.52% 1.08%
Guidewire Software 7.23% 10.15% 5.49%

Volatility and Risk

Global Business Travel Group has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Guidewire Software has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Summary

Guidewire Software beats Global Business Travel Group on 10 of the 14 factors compared between the two stocks.

About Global Business Travel Group

(Get Free Report)

Global Business Travel Group, Inc. provides business-to-business (B2B) travel platform in the United States and internationally. The company's platform offers a suite of technology-enabled solutions to business travelers and clients; travel content suppliers, such as airlines, hotels, ground transportation, and aggregators; and third-party travel agencies. It also provides consulting, meetings and events planning, and outsourced services. Global Business Travel Group, Inc. is based in New York, New York.

About Guidewire Software

(Get Free Report)

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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