Guidewire Software, Inc. (GWRE) vs HubSpot, Inc. (HUBS)

Guidewire Software, Inc. and HubSpot, Inc. are both Software Application companies. Guidewire Software, Inc. is the larger, with a market value of $12.4B against $11.0B — 1.1× the size. HubSpot, Inc. trades at the lower P/E: 75.3× against 87.7×. Guidewire Software, Inc. grew revenue faster over the last twelve months: 22.7% against 21.1%. Guidewire Software, Inc. has the higher net margin (9.44% vs 4.26%) and the lower return on invested capital (8.37% vs 25.6%). Across the 21 metrics below, HubSpot, Inc. leads on 14 and Guidewire Software, Inc. on 7.

Valuation

Metric GWRE HUBS Software Application median
P/E 87.69 75.25 24.79
P/S 8.31 3.12 2.67
P/B 10.27 6.50 3.01
Price to free cash flow 34.17 16.37 16.59
EV/EBITDA 58.70 37.52 14.40
EV/Sales 8.38 2.87 2.62
Earnings yield 1.14% 1.33% 0.00%
Free cash flow yield 2.93% 6.11% 1.91%

Profitability

Metric GWRE HUBS Software Application median
Gross margin 64.21% 83.25% 67.03%
Operating margin 10.16% 3.79% 0.00%
Net margin 9.44% 4.26% 0.00%
Free cash flow margin 24.31% 19.07% 4.32%
Return on equity 10.51% 7.89% 0.00%
Return on assets 5.26% 4.09% 0.00%
Return on invested capital 8.37% 25.63% 0.00%

Growth

Metric GWRE HUBS Software Application median
Revenue growth (TTM) 22.70% 21.11% 12.40%
EPS growth (last fiscal year) 101.23% 855.56% —
Revenue growth, 5-year CAGR 14.70% 28.81% 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GWRE HUBS Software Application median
Debt to equity 0.57 0.00 0.02
Current ratio 1.79 1.38 1.55
Net debt to EBITDA (0.36) (16.42) 0.06

Dividend

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

Size

Metric GWRE HUBS Software Application median
Market cap 12.38b 11.02b 396.11m

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