HubSpot (NYSE: HUBS) and Guidewire Software (NYSE:GWRE) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.
Insider and Institutional Ownership
96.1% of HubSpot shares are owned by institutional investors. 12.1% of HubSpot shares are owned by insiders. Comparatively, 1.0% of Guidewire Software shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares HubSpot and Guidewire Software’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|HubSpot||$318.38 million||9.94||-$34.68 million||($1.17)||-73.08|
|Guidewire Software||$514.28 million||11.62||$47.34 million||$0.28||284.43|
Guidewire Software has higher revenue and earnings than HubSpot. HubSpot is trading at a lower price-to-earnings ratio than Guidewire Software, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for HubSpot and Guidewire Software, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
HubSpot currently has a consensus price target of $78.41, indicating a potential downside of 8.29%. Guidewire Software has a consensus price target of $79.57, indicating a potential downside of 0.09%. Given Guidewire Software’s higher possible upside, analysts plainly believe Guidewire Software is more favorable than HubSpot.
This table compares HubSpot and Guidewire Software’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
HubSpot has a beta of 2.42, indicating that its share price is 142% more volatile than the S&P 500. Comparatively, Guidewire Software has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.
Guidewire Software beats HubSpot on 9 of the 14 factors compared between the two stocks.
HubSpot Company Profile
HubSpot, Inc. (HubSpot) provides a cloud-based marketing and sales software platform. The Company’s software platform features integrated applications to help businesses attract visitors to their Websites, convert visitors into leads, close leads into customers and delight customers so that they become promoters of those businesses. These integrated applications include social media, search engine optimization, blogging, Website content management, marketing automation, e-mail, sales productivity, customer relationship management (CRM), analytics and reporting. The Company’s products include HubSpot Marketing, HubSpot CRM and HubSpot Sales. The Company offers Professional Services and support. It offers professional services to educate and train customers on how to leverage its software platform and inbound marketing methodology to transform how their business attracts, engages and delights customers.
Guidewire Software Company Profile
Guidewire Software, Inc. is a provider of software products for property and casualty (P&C) insurers. The Company’s software serves as a technology platform for P&C insurance carriers. The Company’s InsurancePlatform consists of three elements: core transaction processing, data management and analytics, and digital engagement. The Company sells its products to a range of global P&C insurance carriers ranging from global insurers to national carriers to regional carriers. The Company’s core transaction processing includes Guidewire InsuranceSuite, Guidewire PolicyCenter, Guidewire ClaimCenter, Guidewire BillingCenter and InsuranceSuite Add-on Modules. The Company’s data management and analytics includes Guidewire DataHub, Guidewire InfoCenter, Guidewire Live and Guidewire Predictive Analytics. The Company’s digital engagement includes Guidewire Digital Portals.
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