Guidewire Software, Inc. (GWRE) vs SS&C Technologies Holdings, Inc. (SSNC)

Guidewire Software, Inc. and SS&C Technologies Holdings, Inc. are both Software Application companies. SS&C Technologies Holdings, Inc. is the larger, with a market value of $19.8B against $14.4B — 1.4× the size. SS&C Technologies Holdings, Inc. trades at the lower P/E: 23.4× against 102×. Guidewire Software, Inc. grew revenue faster over the last twelve months: 22.7% against 8.57%. SS&C Technologies Holdings, Inc. has the higher net margin (13.2% vs 9.44%) and the lower return on invested capital (6.99% vs 8.37%). Across the 22 metrics below, SS&C Technologies Holdings, Inc. leads on 12 and Guidewire Software, Inc. on 10.

Valuation

Metric GWRE SSNC Software Application median
P/E 101.72 23.42 25.41
P/S 9.64 3.05 2.73
P/B 11.91 2.98 2.57
Price to free cash flow 39.64 13.14 17.58
EV/EBITDA 68.02 11.93 15.36
EV/Sales 9.71 4.14 2.59
Earnings yield 0.98% 4.27% 0.00%
Free cash flow yield 2.52% 7.61% 2.24%

Profitability

Metric GWRE SSNC Software Application median
Gross margin 64.21% 48.10% 67.03%
Operating margin 10.16% 23.61% 0.00%
Net margin 9.44% 13.16% 0.00%
Free cash flow margin 24.31% 23.21% 5.01%
Return on equity 10.51% 12.59% 0.00%
Return on assets 5.26% 4.36% 0.00%
Return on invested capital 8.37% 6.99% 0.00%

Growth

Metric GWRE SSNC Software Application median
Revenue growth (TTM) 22.70% 8.57% 12.48%
EPS growth (last fiscal year) 101.23% 5.00% 32.26%
Revenue growth, 5-year CAGR 14.70% 6.09% 14.21%
Net income growth, 5-year CAGR 0.00% 4.97% 0.00%

Health

Metric GWRE SSNC Software Application median
Debt to equity 0.57 1.13 0.02
Current ratio 1.79 1.06 1.52
Net debt to EBITDA (0.36) 3.24 0.08

Dividend

Metric GWRE SSNC Software Application median
Dividend yield — 1.32% 0.95%
Payout ratio — 0.32 0.29

Size

Metric GWRE SSNC Software Application median
Market cap 14.41b 19.76b 357.77m

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