Guidewire Software (NYSE:GWRE – Get Free Report) and Global Business Travel Group (NYSE:GBTG – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.
Earnings and Valuation
This table compares Guidewire Software and Global Business Travel Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Guidewire Software | $1.20 billion | 10.19 | $69.80 million | $1.05 | 137.30 |
| Global Business Travel Group | $2.42 billion | 1.19 | -$138.00 million | $0.02 | 275.00 |
Volatility & Risk
Guidewire Software has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Global Business Travel Group has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for Guidewire Software and Global Business Travel Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Guidewire Software | 1 | 4 | 11 | 0 | 2.63 |
| Global Business Travel Group | 1 | 2 | 3 | 0 | 2.33 |
Guidewire Software currently has a consensus price target of $255.92, suggesting a potential upside of 77.53%. Global Business Travel Group has a consensus price target of $10.25, suggesting a potential upside of 86.36%. Given Global Business Travel Group’s higher possible upside, analysts clearly believe Global Business Travel Group is more favorable than Guidewire Software.
Profitability
This table compares Guidewire Software and Global Business Travel Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Guidewire Software | 7.23% | 10.15% | 5.49% |
| Global Business Travel Group | 0.40% | 3.52% | 1.08% |
Institutional & Insider Ownership
82.5% of Global Business Travel Group shares are owned by institutional investors. 0.5% of Guidewire Software shares are owned by insiders. Comparatively, 1.7% of Global Business Travel Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Guidewire Software beats Global Business Travel Group on 9 of the 14 factors compared between the two stocks.
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.
About Global Business Travel Group
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.
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