Guidewire Software Inc (GWRE)vsServiceNow Inc (NOW)
GWRE
Guidewire Software Inc
$167.26
+4.93%
TECHNOLOGY · Cap: $12.49B
NOW
ServiceNow Inc
$115.76
-4.93%
TECHNOLOGY · Cap: $98.45B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 883% more annual revenue ($13.96B vs $1.42B). NOW leads profitability with a 12.6% profit margin vs 11.3%. GWRE appears more attractively valued with a PEG of 0.82. NOW earns a higher WallStSmart Score of 59/100 (C).
GWRE
Buy50
out of 100
Grade: C-
NOW
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+13.2%
Fair Value
$150.26
Current Price
$167.26
$17.00 discount
Margin of Safety
+80.8%
Fair Value
$602.92
Current Price
$115.76
$487.16 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Revenue surging 26.9% year-over-year
Large-cap with strong market position
Growing faster than its price suggests
Revenue surging 22.1% year-over-year
Areas to Watch
Trading at 10.6x book value
Premium valuation, high expectations priced in
Earnings declined 64.8%
Negative free cash flow — burning cash
Trading at 10.2x book value
2.3% earnings growth
Distress zone — elevated risk
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : GWRE
The strongest argument for GWRE centers on PEG Ratio, Revenue Growth. Revenue growth of 26.9% demonstrates continued momentum. PEG of 0.82 suggests the stock is reasonably priced for its growth.
Bull Case : NOW
The strongest argument for NOW centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 0.89 suggests the stock is reasonably priced for its growth.
Bear Case : GWRE
The primary concerns for GWRE are Price/Book, P/E Ratio, EPS Growth. A P/E of 80.7x leaves little room for execution misses.
Bear Case : NOW
The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 60.4x leaves little room for execution misses.
Key Dynamics to Monitor
NOW carries more volatility with a beta of 0.96 — expect wider price swings.
GWRE is growing revenue faster at 26.9% — sustainability is the question.
NOW generates stronger free cash flow (473M), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NOW scores higher overall (59/100 vs 50/100) and 22.1% 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.
ServiceNow Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.
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