Guidewire Software Inc (GWRE)vsSAP SE ADR (SAP)
GWRE
Guidewire Software Inc
$136.06
-10.00%
TECHNOLOGY · Cap: $10.20B
SAP
SAP SE ADR
$184.77
-1.27%
TECHNOLOGY · Cap: $192.92B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 2528% more annual revenue ($37.34B vs $1.42B). SAP leads profitability with a 19.6% profit margin vs 11.3%. GWRE appears more attractively valued with a PEG of 0.67. SAP earns a higher WallStSmart Score of 59/100 (C).
GWRE
Buy53
out of 100
Grade: C-
SAP
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+13.7%
Fair Value
$151.03
Current Price
$136.06
$14.97 discount
Margin of Safety
-34.7%
Fair Value
$145.83
Current Price
$184.77
$38.94 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Revenue surging 26.9% year-over-year
Strong operational efficiency at 30.0%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Generating 3.3B in free cash flow
Areas to Watch
Trading at 8.6x book value
Premium valuation, high expectations priced in
Earnings declined 64.8%
Negative free cash flow — burning cash
No major concerns identified
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 0.67 suggests the stock is reasonably priced for its growth.
Bull Case : SAP
The strongest argument for SAP centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.6% and operating margin at 30.0%. PEG of 1.44 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 65.9x leaves little room for execution misses.
Bear Case : SAP
No major red flags identified for SAP, but monitor valuation.
Key Dynamics to Monitor
GWRE profiles as a growth stock while SAP is a mature play — different risk/reward profiles.
GWRE carries more volatility with a beta of 0.92 — expect wider price swings.
GWRE is growing revenue faster at 26.9% — sustainability is the question.
SAP generates stronger free cash flow (3.3B), providing more financial flexibility.
Bottom Line
SAP scores higher overall (59/100 vs 53/100), backed by strong 19.6% margins. 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.
SAP SE ADR
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.
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