Guidewire Software Inc (GWRE)vsSAP SE ADR (SAP)
GWRE
Guidewire Software Inc
$166.92
-1.32%
TECHNOLOGY · Cap: $13.85B
SAP
SAP SE ADR
$236.93
+0.48%
TECHNOLOGY · Cap: $272.16B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 2570% more annual revenue ($39.39B vs $1.48B). SAP leads profitability with a 20.4% profit margin vs 9.4%. GWRE appears more attractively valued with a PEG of 1.00. SAP earns a higher WallStSmart Score of 60/100 (C).
GWRE
Buy50
out of 100
Grade: C-
SAP
Buy60
out of 100
Grade: C
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
-25.6%
Fair Value
$156.37
Current Price
$236.93
$80.56 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
15.3% revenue growth
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Keeps 20 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Generating 1.7B in free cash flow
Areas to Watch
Trading at 11.5x book value
Premium valuation, high expectations priced in
Earnings declined 38.2%
Distress zone — elevated risk
Expensive relative to growth rate
Moderate valuation
Trading at 74.3x book value
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 : SAP
The strongest argument for SAP centers on Market Cap, Altman Z-Score, Profit Margin. Profitability is solid with margins at 20.4% and operating margin at 29.5%. Revenue growth of 13.2% demonstrates continued momentum.
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 : SAP
The primary concerns for SAP are PEG Ratio, P/E Ratio, Price/Book.
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 1.03 — expect wider price swings.
GWRE is growing revenue faster at 15.3% — sustainability is the question.
SAP generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
SAP scores higher overall (60/100 vs 50/100), backed by strong 20.4% margins and 13.2% revenue growth. GWRE offers better value entry with a 17.5% margin of safety. 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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