CWAN vs. GWRE: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CWAN and GWRE, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CWAN | GWRE |
|---|---|---|
| Company Name | Clearwater Analytics Holdings, Inc. | Guidewire Software, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Software | Software |
| Market Capitalization | 6.39 billion USD | 17.60 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | September 24, 2021 | January 25, 2012 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CWAN and GWRE by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | CWAN | GWRE |
|---|---|---|
| 5-Day Price Return | 4.36% | -3.87% |
| 13-Week Price Return | -19.53% | -2.32% |
| 26-Week Price Return | -32.57% | -3.98% |
| 52-Week Price Return | -12.22% | 43.35% |
| Month-to-Date Return | -3.21% | -7.61% |
| Year-to-Date Return | -28.74% | 23.98% |
| 10-Day Avg. Volume | 6.49M | 0.60M |
| 3-Month Avg. Volume | 3.97M | 0.80M |
| 3-Month Volatility | 37.62% | 38.10% |
| Beta | 0.75 | 1.20 |
Profitability
Return on Equity (TTM)
CWAN
59.01%
Software Industry
- Max
- 59.01%
- Q3
- 21.98%
- Median
- 7.15%
- Q1
- -11.12%
- Min
- -51.24%
In the upper quartile for the Software industry, CWAN’s Return on Equity of 59.01% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
GWRE
2.64%
Software Industry
- Max
- 59.01%
- Q3
- 21.98%
- Median
- 7.15%
- Q1
- -11.12%
- Min
- -51.24%
GWRE’s Return on Equity of 2.64% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
CWAN
90.13%
Software Industry
- Max
- 48.14%
- Q3
- 18.23%
- Median
- 5.60%
- Q1
- -9.22%
- Min
- -49.36%
CWAN’s Net Profit Margin of 90.13% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
GWRE
3.04%
Software Industry
- Max
- 48.14%
- Q3
- 18.23%
- Median
- 5.60%
- Q1
- -9.22%
- Min
- -49.36%
GWRE’s Net Profit Margin of 3.04% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
CWAN
4.09%
Software Industry
- Max
- 57.34%
- Q3
- 20.60%
- Median
- 7.84%
- Q1
- -8.72%
- Min
- -51.37%
CWAN’s Operating Profit Margin of 4.09% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.
GWRE
-2.79%
Software Industry
- Max
- 57.34%
- Q3
- 20.60%
- Median
- 7.84%
- Q1
- -8.72%
- Min
- -51.37%
GWRE has a negative Operating Profit Margin of -2.79%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | CWAN | GWRE |
|---|---|---|
| Return on Equity (TTM) | 59.01% | 2.64% |
| Return on Assets (TTM) | 46.84% | 1.41% |
| Net Profit Margin (TTM) | 90.13% | 3.04% |
| Operating Profit Margin (TTM) | 4.09% | -2.79% |
| Gross Profit Margin (TTM) | 72.95% | 62.16% |
Financial Strength
Current Ratio (MRQ)
CWAN
5.09
Software Industry
- Max
- 3.83
- Q3
- 2.31
- Median
- 1.45
- Q1
- 1.03
- Min
- 0.24
CWAN’s Current Ratio of 5.09 is exceptionally high, placing it well outside the typical range for the Software industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
GWRE
3.23
Software Industry
- Max
- 3.83
- Q3
- 2.31
- Median
- 1.45
- Q1
- 1.03
- Min
- 0.24
GWRE’s Current Ratio of 3.23 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio (MRQ)
CWAN
0.04
Software Industry
- Max
- 2.14
- Q3
- 0.90
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
CWAN’s Debt-to-Equity Ratio of 0.04 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
GWRE
0.49
Software Industry
- Max
- 2.14
- Q3
- 0.90
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
GWRE’s Debt-to-Equity Ratio of 0.49 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
CWAN
0.70
Software Industry
- Max
- 67.02
- Q3
- 19.86
- Median
- 0.70
- Q1
- -12.50
- Min
- -53.00
CWAN’s Interest Coverage Ratio of 0.70 is a critical concern. A value below 1.0 means operating earnings are insufficient to cover interest expenses, indicating severe financial strain and high default risk.
GWRE
-7.00
Software Industry
- Max
- 67.02
- Q3
- 19.86
- Median
- 0.70
- Q1
- -12.50
- Min
- -53.00
GWRE has a negative Interest Coverage Ratio of -7.00. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | CWAN | GWRE |
|---|---|---|
| Current Ratio (MRQ) | 5.09 | 3.23 |
| Quick Ratio (MRQ) | 4.87 | 3.04 |
| Debt-to-Equity Ratio (MRQ) | 0.04 | 0.49 |
| Interest Coverage Ratio (TTM) | 0.70 | -7.00 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CWAN
0.00%
Software Industry
- Max
- 0.08%
- Q3
- 0.03%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CWAN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
GWRE
0.00%
Software Industry
- Max
- 0.08%
- Q3
- 0.03%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
GWRE currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
CWAN
0.00%
Software Industry
- Max
- 1.32%
- Q3
- 0.53%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CWAN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
GWRE
0.00%
Software Industry
- Max
- 1.32%
- Q3
- 0.53%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
GWRE has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | CWAN | GWRE |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
CWAN
13.37
Software Industry
- Max
- 149.35
- Q3
- 100.21
- Median
- 47.97
- Q1
- 26.77
- Min
- 11.68
In the lower quartile for the Software industry, CWAN’s P/E Ratio of 13.37 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
GWRE
505.65
Software Industry
- Max
- 149.35
- Q3
- 100.21
- Median
- 47.97
- Q1
- 26.77
- Min
- 11.68
At 505.65, GWRE’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Software industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Price-to-Sales Ratio (TTM)
CWAN
12.05
Software Industry
- Max
- 25.24
- Q3
- 13.52
- Median
- 8.15
- Q1
- 4.87
- Min
- 0.98
CWAN’s P/S Ratio of 12.05 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
GWRE
15.39
Software Industry
- Max
- 25.24
- Q3
- 13.52
- Median
- 8.15
- Q1
- 4.87
- Min
- 0.98
GWRE’s P/S Ratio of 15.39 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
CWAN
6.12
Software Industry
- Max
- 30.95
- Q3
- 14.91
- Median
- 7.75
- Q1
- 3.60
- Min
- 0.38
CWAN’s P/B Ratio of 6.12 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
GWRE
12.61
Software Industry
- Max
- 30.95
- Q3
- 14.91
- Median
- 7.75
- Q1
- 3.60
- Min
- 0.38
GWRE’s P/B Ratio of 12.61 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | CWAN | GWRE |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 13.37 | 505.65 |
| Price-to-Sales Ratio (TTM) | 12.05 | 15.39 |
| Price-to-Book Ratio (MRQ) | 6.12 | 12.61 |
| Price-to-Free Cash Flow Ratio (TTM) | 50.52 | 58.44 |