Guidewire Software, Inc. (GWRE) vs Manhattan Associates, Inc. (MANH)

Guidewire Software, Inc. and Manhattan Associates, Inc. are both Software Application companies. Guidewire Software, Inc. and Manhattan Associates, Inc. are of similar size ($12.4B and $12.2B). Manhattan Associates, Inc. trades at the lower P/E: 58.4× against 87.7×. Guidewire Software, Inc. grew revenue faster over the last twelve months: 22.7% against 6.48%. Manhattan Associates, Inc. has the higher net margin (18.7% vs 9.44%) and the lower return on invested capital (0.00% vs 8.37%). Across the 22 metrics below, Manhattan Associates, Inc. leads on 13 and Guidewire Software, Inc. on 9.

Valuation

Metric GWRE MANH Software Application median
P/E 87.69 58.37 24.79
P/S 8.31 10.75 2.67
P/B 10.27 76.86 3.01
Price to free cash flow 34.17 30.33 16.59
EV/EBITDA 58.70 42.47 14.40
EV/Sales 8.38 10.58 2.62
Earnings yield 1.14% 1.71% 0.00%
Free cash flow yield 2.93% 3.30% 1.91%

Profitability

Metric GWRE MANH Software Application median
Gross margin 64.21% 55.81% 67.03%
Operating margin 10.16% 24.33% 0.00%
Net margin 9.44% 18.67% 0.00%
Free cash flow margin 24.31% 35.45% 4.32%
Return on equity 10.51% 96.38% 0.00%
Return on assets 5.26% 29.13% 0.00%
Return on invested capital 8.37% 0.00% 0.00%

Growth

Metric GWRE MANH Software Application median
Revenue growth (TTM) 22.70% 6.48% 12.40%
EPS growth (last fiscal year) 101.23% 2.56% —
Revenue growth, 5-year CAGR 14.70% 13.02% 13.72%
Net income growth, 5-year CAGR 0.00% 20.32% 0.00%

Health

Metric GWRE MANH Software Application median
Debt to equity 0.57 0.00 0.02
Current ratio 1.79 0.98 1.55
Net debt to EBITDA (0.36) (1.15) 0.06

Dividend

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

Size

Metric GWRE MANH Software Application median
Market cap 12.38b 12.22b 396.11m

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