Guidewire Software Inc (GWRE)vsServiceNow Inc (NOW)
GWRE
Guidewire Software Inc
$166.92
-1.32%
TECHNOLOGY · Cap: $13.85B
NOW
ServiceNow Inc
$150.13
-26.95%
TECHNOLOGY · Cap: $146.78B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 899% more annual revenue ($14.73B vs $1.48B). NOW leads profitability with a 11.3% profit margin vs 9.4%. GWRE appears more attractively valued with a PEG of 1.00. GWRE earns a higher WallStSmart Score of 50/100 (C-).
GWRE
Buy50
out of 100
Grade: C-
NOW
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+17.5%
Fair Value
$158.09
Current Price
$166.92
$8.83 discount
Margin of Safety
+74.4%
Fair Value
$617.23
Current Price
$150.13
$467.10 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
15.3% revenue growth
Large-cap with strong market position
Revenue surging 24.0% year-over-year
Areas to Watch
Trading at 11.5x book value
Premium valuation, high expectations priced in
Earnings declined 38.2%
Distress zone — elevated risk
Trading at 12.4x book value
Distress zone — elevated risk
Operating margin of 4.1%
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 15.3% demonstrates continued momentum. PEG of 1.00 suggests the stock is reasonably priced for its growth.
Bull Case : NOW
The strongest argument for NOW centers on Market Cap, Revenue Growth. Revenue growth of 24.0% demonstrates continued momentum. PEG of 1.01 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 103.6x leaves little room for execution misses.
Bear Case : NOW
The primary concerns for NOW are Price/Book, Altman Z-Score, Operating Margin. A P/E of 88.7x leaves little room for execution misses.
Key Dynamics to Monitor
GWRE carries more volatility with a beta of 1.03 — expect wider price swings.
NOW is growing revenue faster at 24.0% — 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
GWRE scores higher overall (50/100 vs 47/100) and 15.3% revenue growth. NOW offers better value entry with a 74.4% margin of safety. Both earn "Buy" and "Hold" 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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