Figma, Inc. (FIG) vs Guidewire Software, Inc. (GWRE)

Figma, Inc. and Guidewire Software, Inc. are both Software Application companies. Figma, Inc. and Guidewire Software, Inc. are of similar size ($12.4B and $11.4B). Figma, Inc. has negative trailing earnings, so its P/E is not meaningful; Guidewire Software, Inc. trades at 87.7×. Figma, Inc. grew revenue faster over the last twelve months: 43.4% against 22.7%. Guidewire Software, Inc. has the higher net margin (9.44% vs −118.2%) and the higher return on invested capital (8.37% vs 0.00%). Across the 18 metrics below, Guidewire Software, Inc. leads on 12 and Figma, Inc. on 6.

Valuation

Metric FIG GWRE Software Application median
P/E n/m 87.69 24.79
P/S 8.57 8.31 2.67
P/B 7.43 10.27 3.01
Price to free cash flow 49.65 34.17 16.59
EV/EBITDA n/m 58.70 14.40
EV/Sales 7.27 8.38 2.62
Earnings yield (17.47%) 1.14% 0.00%
Free cash flow yield 2.01% 2.93% 1.91%

Profitability

Metric FIG GWRE Software Application median
Gross margin 79.14% 64.21% 67.03%
Operating margin (123.84%) 10.16% 0.00%
Net margin (118.18%) 9.44% 0.00%
Free cash flow margin 17.27% 24.31% 4.32%
Return on equity (117.60%) 10.51% 0.00%
Return on assets (69.06%) 5.26% 0.00%
Return on invested capital 0.00% 8.37% 0.00%

Growth

Metric FIG GWRE Software Application median
Revenue growth (TTM) 43.43% 22.70% 12.40%
EPS growth (last fiscal year) 0.80% 101.23% —
Revenue growth, 5-year CAGR — 14.70% 13.72%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric FIG GWRE Software Application median
Debt to equity 0.00 0.57 0.02
Current ratio 2.45 1.79 1.55
Net debt to EBITDA 1.32 (0.36) 0.06

Dividend

Metric FIG GWRE Software Application median
Dividend yield — — 1.25%
Payout ratio — 0.00 0.00

Size

Metric FIG GWRE Software Application median
Market cap 11.37b 12.38b 396.11m

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