Fair Isaac Corporation (FICO) vs Guidewire Software, Inc. (GWRE)

Fair Isaac Corporation and Guidewire Software, Inc. are both Software Application companies. Fair Isaac Corporation is the larger, with a market value of $15.3B against $13.1B — 1.2× the size. Fair Isaac Corporation trades at the lower P/E: 20.5× against 98.0×. Fair Isaac Corporation grew revenue faster over the last twelve months: 24.1% against 22.7%. Fair Isaac Corporation has the higher net margin (34.1% vs 9.44%) and the higher return on invested capital (62.5% vs 8.37%). Across the 21 metrics below, Fair Isaac Corporation leads on 16 and Guidewire Software, Inc. on 5.

Valuation

Metric FICO GWRE Software Application median
P/E 20.45 98.02 26.76
P/S 6.74 9.29 2.99
P/B n/m 11.48 2.59
Price to free cash flow 16.80 38.20 18.02
EV/EBITDA 17.15 65.57 16.06
EV/Sales 8.97 9.36 2.92
Earnings yield 4.89% 1.02% 0.00%
Free cash flow yield 5.95% 2.62% 2.00%

Profitability

Metric FICO GWRE Software Application median
Gross margin 85.10% 64.21% 67.03%
Operating margin 51.65% 10.16% 0.00%
Net margin 34.05% 9.44% 0.00%
Free cash flow margin 40.14% 24.31% 5.71%
Return on equity (29.67%) 10.51% 0.00%
Return on assets 41.80% 5.26% 0.00%
Return on invested capital 62.47% 8.37% 0.00%

Growth

Metric FICO GWRE Software Application median
Revenue growth (TTM) 24.09% 22.70% 12.43%
EPS growth (last fiscal year) 29.78% 101.23% 31.92%
Revenue growth, 5-year CAGR 8.99% 14.70% 14.34%
Net income growth, 5-year CAGR 22.49% 0.00% 0.00%

Health

Metric FICO GWRE Software Application median
Debt to equity (1.36) 0.57 0.03
Current ratio 1.18 1.79 1.56
Net debt to EBITDA 3.11 (0.36) 0.08

Dividend

Metric FICO GWRE Software Application median
Dividend yield — — 0.93%
Payout ratio — — 0.29

Size

Metric FICO GWRE Software Application median
Market cap 15.32b 13.12b 423.97m

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