Guidewire Software, Inc. (GWRE) vs Tyler Technologies, Inc. (TYL)

Guidewire Software, Inc. and Tyler Technologies, Inc. are both Software Application companies. Guidewire Software, Inc. and Tyler Technologies, Inc. are of similar size ($13.4B and $12.4B). Tyler Technologies, Inc. trades at the lower P/E: 42.7× against 87.7×. Guidewire Software, Inc. grew revenue faster over the last twelve months: 22.7% against 8.19%. Tyler Technologies, Inc. has the higher net margin (13.4% vs 9.44%) and the lower return on invested capital (6.61% vs 8.37%). Across the 22 metrics below, Tyler Technologies, Inc. leads on 16 and Guidewire Software, Inc. on 6.

Valuation

Metric GWRE TYL Software Application median
P/E 87.69 42.67 24.79
P/S 8.31 5.58 2.67
P/B 10.27 4.46 3.01
Price to free cash flow 34.17 19.20 16.59
EV/EBITDA 58.70 27.92 14.40
EV/Sales 8.38 6.00 2.62
Earnings yield 1.14% 2.34% 0.00%
Free cash flow yield 2.93% 5.21% 1.91%

Profitability

Metric GWRE TYL Software Application median
Gross margin 64.21% 47.21% 67.03%
Operating margin 10.16% 15.14% 0.00%
Net margin 9.44% 13.36% 0.00%
Free cash flow margin 24.31% 29.05% 4.32%
Return on equity 10.51% 9.73% 0.00%
Return on assets 5.26% 5.78% 0.00%
Return on invested capital 8.37% 6.61% 0.00%

Growth

Metric GWRE TYL Software Application median
Revenue growth (TTM) 22.70% 8.19% 12.40%
EPS growth (last fiscal year) 101.23% 19.01% —
Revenue growth, 5-year CAGR 14.70% 15.87% 13.72%
Net income growth, 5-year CAGR 0.00% 10.13% 0.00%

Health

Metric GWRE TYL Software Application median
Debt to equity 0.57 0.46 0.02
Current ratio 1.79 1.55 1.55
Net debt to EBITDA (0.36) (0.98) 0.06

Dividend

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

Size

Metric GWRE TYL Software Application median
Market cap 12.38b 13.39b 396.11m

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