Guidewire Software Inc (GWRE)vsShopify Inc (SHOP)
GWRE
Guidewire Software Inc
$136.06
-10.00%
TECHNOLOGY · Cap: $10.20B
SHOP
Shopify Inc
$109.54
-5.60%
TECHNOLOGY · Cap: $139.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 770% more annual revenue ($12.37B vs $1.42B). GWRE leads profitability with a 11.3% profit margin vs 10.8%. GWRE appears more attractively valued with a PEG of 0.67. GWRE earns a higher WallStSmart Score of 53/100 (C-).
GWRE
Buy53
out of 100
Grade: C-
SHOP
Buy50
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
+18.4%
Fair Value
$143.39
Current Price
$109.54
$33.85 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Revenue surging 26.9% year-over-year
Revenue surging 34.3% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
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
Expensive relative to growth rate
Trading at 11.4x book value
Weak financial health signals
Premium valuation, high expectations priced in
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 : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 34.3% demonstrates continued momentum.
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 : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 105.4x leaves little room for execution misses.
Key Dynamics to Monitor
SHOP carries more volatility with a beta of 2.59 — expect wider price swings.
SHOP is growing revenue faster at 34.3% — sustainability is the question.
SHOP generates stronger free cash flow (476M), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GWRE scores higher overall (53/100 vs 50/100) and 26.9% revenue growth. SHOP offers better value entry with a 18.4% 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.
Shopify Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
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