Analyzing Guidewire Software (NYSE:GWRE) and AvePoint (NASDAQ:AVPT)

Guidewire Software (NYSE:GWREGet Rating) and AvePoint (NASDAQ:AVPTGet Rating) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Earnings & Valuation

This table compares Guidewire Software and AvePoint’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Guidewire Software $812.61 million 6.14 -$180.43 million ($2.17) -28.08
AvePoint $191.91 million 4.44 -$33.24 million ($0.20) -23.30

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

Profitability

This table compares Guidewire Software and AvePoint’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Guidewire Software -22.20% -10.06% -6.73%
AvePoint -18.63% -21.98% -13.92%

Institutional & Insider Ownership

99.4% of Guidewire Software shares are held by institutional investors. Comparatively, 42.0% of AvePoint shares are held by institutional investors. 0.2% of Guidewire Software shares are held by insiders. Comparatively, 24.7% of AvePoint shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Guidewire Software and AvePoint, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guidewire Software 1 3 4 0 2.38
AvePoint 0 2 1 0 2.33

Guidewire Software presently has a consensus price target of $89.56, suggesting a potential upside of 46.98%. AvePoint has a consensus price target of $7.17, suggesting a potential upside of 53.79%. Given AvePoint’s higher probable upside, analysts plainly believe AvePoint is more favorable than Guidewire Software.

Volatility & Risk

Guidewire Software has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, AvePoint has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Summary

Guidewire Software beats AvePoint on 8 of the 14 factors compared between the two stocks.

About Guidewire Software

(Get Rating)

Guidewire Software, Inc. provides software products for property and casualty (P&C) insurers worldwide. The company offers Guidewire InsuranceSuite Cloud comprising 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; Guidewire Reinsurance Management to use rules-based logic to execute reinsurance strategy through underwriting and claims processes; and 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; Guidewire Cyence, a cyber-risk economic modeling product; The company was incorporated in 2001 and is headquartered in San Mateo, California.

About AvePoint

(Get Rating)

AvePoint, Inc. provides Microsoft 365 data management solutions worldwide. It offers SaaS platform cloud-hosted collaboration systems by providing suite of software products. The company focuses on data protection, governance, compliance management extensions for Microsoft 365, Dynamics 365, Salesforce, and Google Workspace. In addition, the company offers software solutions for Microsoft 365, including microsoft teams, sharepoint online, exchange online, onedrive, project online, planner, yammer and other public folders. The company was incorporated in 2001 and is headquartered in Jersey City, New Jersey.

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