Dynatrace, Inc. (DT) vs Guidewire Software, Inc. (GWRE)

Dynatrace, Inc. and Guidewire Software, Inc. are both Software Application companies. Dynatrace, Inc. is the larger, with a market value of $18.4B against $14.4B — 1.3× the size. Guidewire Software, Inc. trades at the lower P/E: 102× against 120×. Guidewire Software, Inc. grew revenue faster over the last twelve months: 22.7% against 17.9%. Guidewire Software, Inc. has the higher net margin (9.44% vs 7.22%) and the lower return on invested capital (8.37% vs 11.9%). Across the 22 metrics below, Dynatrace, Inc. leads on 14 and Guidewire Software, Inc. on 8.

Valuation

Metric DT GWRE Software Application median
P/E 119.82 101.72 25.41
P/S 8.52 9.64 2.73
P/B 7.29 11.91 2.57
Price to free cash flow 31.27 39.64 17.58
EV/EBITDA 60.66 68.02 15.36
EV/Sales 8.10 9.71 2.59
Earnings yield 0.83% 0.98% 0.00%
Free cash flow yield 3.20% 2.52% 2.24%

Profitability

Metric DT GWRE Software Application median
Gross margin 81.37% 64.21% 67.03%
Operating margin 12.15% 10.16% 0.00%
Net margin 7.22% 9.44% 0.00%
Free cash flow margin 27.23% 24.31% 5.01%
Return on equity 5.88% 10.51% 0.00%
Return on assets 3.70% 5.26% 0.00%
Return on invested capital 11.85% 8.37% 0.00%

Growth

Metric DT GWRE Software Application median
Revenue growth (TTM) 17.94% 22.70% 12.48%
EPS growth (last fiscal year) (66.04%) 101.23% 32.26%
Revenue growth, 5-year CAGR 23.47% 14.70% 14.21%
Net income growth, 5-year CAGR 16.53% 0.00% 0.00%

Health

Metric DT GWRE Software Application median
Debt to equity 0.00 0.57 0.02
Current ratio 1.21 1.79 1.52
Net debt to EBITDA (4.35) (0.36) 0.08

Dividend

Metric DT GWRE Software Application median
Dividend yield — — 0.95%
Payout ratio — — 0.29

Size

Metric DT GWRE Software Application median
Market cap 18.42b 14.41b 357.77m

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