JFrog Ltd. (FROG) vs Guidewire Software, Inc. (GWRE)

JFrog Ltd. and Guidewire Software, Inc. are both Software Application companies. Guidewire Software, Inc. is the larger, with a market value of $14.4B against $11.7B — 1.2× the size. JFrog Ltd. has negative trailing earnings, so its P/E is not meaningful; Guidewire Software, Inc. trades at 102×. JFrog Ltd. grew revenue faster over the last twelve months: 26.4% against 22.7%. Guidewire Software, Inc. has the higher net margin (9.44% vs −7.35%) and the higher return on invested capital (8.37% vs −31.7%). Across the 19 metrics below, Guidewire Software, Inc. leads on 12 and JFrog Ltd. on 7.

Valuation

Metric FROG GWRE Software Application median
P/E n/m 101.72 25.41
P/S 17.12 9.64 2.73
P/B 10.69 11.91 2.57
Price to free cash flow 60.63 39.64 17.58
EV/EBITDA n/m 68.02 15.36
EV/Sales 15.74 9.71 2.59
Earnings yield (0.44%) 0.98% 0.00%
Free cash flow yield 1.65% 2.52% 2.24%

Profitability

Metric FROG GWRE Software Application median
Gross margin 77.86% 64.21% 67.03%
Operating margin (11.52%) 10.16% 0.00%
Net margin (7.35%) 9.44% 0.00%
Free cash flow margin 28.29% 24.31% 5.01%
Return on equity (4.93%) 10.51% 0.00%
Return on assets (3.27%) 5.26% 0.00%
Return on invested capital (31.70%) 8.37% 0.00%

Growth

Metric FROG GWRE Software Application median
Revenue growth (TTM) 26.37% 22.70% 12.48%
EPS growth (last fiscal year) 1.59% 101.23% 32.26%
Revenue growth, 5-year CAGR 28.66% 14.70% 14.21%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric FROG GWRE Software Application median
Debt to equity 0.00 0.57 0.02
Current ratio 2.14 1.79 1.52
Net debt to EBITDA 9.70 (0.36) 0.08

Dividend

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

Size

Metric FROG GWRE Software Application median
Market cap 11.66b 14.41b 357.77m

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