GWRE vs. IBM: Guidewire Software vs. IBM Stock Comparison
How do Guidewire Software (GWRE) and IBM (IBM) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Guidewire Software (GWRE) and IBM (IBM) both fall under the Software & Services industry group, but GWRE is classified in Software while IBM is classified in IT Services.
| Profile Item | GWRE | IBM |
|---|---|---|
| Name | Guidewire Software Inc. | International Business Machines Corporation |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | IT Services |
| GICS Sub-Industry | Application Software | IT Consulting & Other Services |
| Market Capitalization | 13.34 billion USD | 231.55 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | January 25, 2012 | January 2, 1962 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | GWRE | IBM |
|---|---|---|
| Total Return (1Y) | -25.97% | -16.98% |
| Total Return (3Y, Annualized) | 21.68% | 22.40% |
| Total Return (5Y, Annualized) | 4.78% | 19.64% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | GWRE | IBM |
|---|---|---|
| Volatility (1Y, Annualized) | 62.03% | 48.48% |
| Beta (5Y) | 0.99 | 0.79 |
| Max Drawdown (5Y) | -60.79% | -37.50% |
| Avg. Volume (3M) | 1.29M | 5.30M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | GWRE | IBM |
|---|---|---|
| Sharpe Ratio (1Y) | -0.49 | -0.44 |
| Sortino Ratio (1Y) | -0.68 | -0.56 |
Profitability
ROE (TTM)
IBM (IBM) at 34.77% sits in the top ROE quartile, while Guidewire Software (GWRE) at 10.51% is closer to the peer norm — stronger capital efficiency for IBM.
GWRE
Software & Services industry group
10.51%
- Max
- 53.85%
- Q3
- 17.90%
- GWRE
- 10.51%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
IBM
Software & Services industry group
34.77%
- Max
- 53.85%
- IBM
- 34.77%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
IBM (IBM) at 15.99% retains a top-quartile share of revenue as profit, ahead of Guidewire Software (GWRE) at 9.44%, which keeps about the industry-typical share.
GWRE
Software & Services industry group
9.44%
- Max
- 41.17%
- Q3
- 15.28%
- GWRE
- 9.44%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
IBM
Software & Services industry group
15.99%
- Max
- 41.17%
- IBM
- 15.99%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Both Guidewire Software (GWRE) at 15.16% and IBM (IBM) at 16.97% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.
GWRE
Software & Services industry group
15.16%
- Max
- 46.89%
- Q3
- 17.64%
- GWRE
- 15.16%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
IBM
Software & Services industry group
16.97%
- Max
- 46.89%
- Q3
- 17.64%
- IBM
- 16.97%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | GWRE | IBM |
|---|---|---|
| ROE (TTM) | 10.51% | 34.77% |
| ROA (TTM) | 3.54% | 5.33% |
| Net Margin (TTM) | 9.44% | 15.99% |
| Operating Margin (TTM) | 15.16% | 16.97% |
| Gross Margin (TTM) | 64.21% | 57.97% |
Growth
Revenue Growth
Both Guidewire Software (GWRE) at 22.70% and IBM (IBM) at 7.62% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Both Guidewire Software (GWRE) at 101.23% and IBM (IBM) at 73.72% sit in the top peer quartile for EPS growth, so each is compounding per-share earnings faster than typical industry peers.
Growth Metrics
| Metric | GWRE | IBM |
|---|---|---|
| Revenue Growth (YoY) | 22.70% | 7.62% |
| Revenue Growth (3Y CAGR) | 17.68% | 3.72% |
| EPS Growth (YoY) | 101.23% | 73.72% |
| EPS Growth (3Y CAGR) | -- | 83.76% |
Financial Strength
Current Ratio (MRQ)
Guidewire Software (GWRE) at 1.79 keeps current ratio within its industry’s typical mid-range, while IBM (IBM) at 0.86 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for IBM.
GWRE
Software & Services industry group
1.79
- Max
- 5.11
- Q3
- 2.77
- GWRE
- 1.79
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
IBM
Software & Services industry group
0.86
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- IBM
- 0.86
- Min
- 0.03
Debt / Equity (MRQ)
Guidewire Software (GWRE) at 0.60 carries an industry-typical debt-to-equity mix, while IBM (IBM) at 1.85 uses more debt funding than most peers.
GWRE
Software & Services industry group
0.60
- Max
- 2.52
- Q3
- 1.13
- GWRE
- 0.60
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
IBM
Software & Services industry group
1.85
- Max
- 2.52
- IBM
- 1.85
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | GWRE | IBM |
|---|---|---|
| Current Ratio (MRQ) | 1.79 | 0.86 |
| Debt / Equity (MRQ) | 0.60 | 1.85 |
| Net Debt / EBITDA | -0.38 | 3.37 |
Dividends
Dividend Yield (TTM)
Guidewire Software (GWRE) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile IBM (IBM) reports a yield of 2.73%, ranking against industry peers normally.
GWRE
Software & Services industry group
0.00%
- GWRE
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
IBM
Software & Services industry group
2.73%
- IBM
- 2.73%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Guidewire Software (GWRE) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile IBM (IBM) reports a payout of 57.51%, ranking against industry peers normally.
GWRE
Software & Services industry group
0.00%
- GWRE
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
IBM
Software & Services industry group
57.51%
- IBM
- 57.51%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | GWRE | IBM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.73% |
| Dividend Payout Ratio (TTM) | 0.00% | 57.51% |
Valuation
P/E Ratio (TTM)
IBM (IBM) at 20.90 is near its industry’s usual P/E ratio, while Guidewire Software (GWRE) at 99.02 sits in the richer quartile — GWRE needs stronger growth or earnings quality to justify the premium.
GWRE
Software & Services industry group
99.02
- Max
- 112.94
- GWRE
- 99.02
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
IBM
Software & Services industry group
20.90
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- IBM
- 20.90
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
IBM (IBM) at 3.31 is priced about in line with its industry on P/S ratio, while Guidewire Software (GWRE) at 9.04 sits in the pricier quartile — GWRE costs more per dollar of sales.
GWRE
Software & Services industry group
9.04
- Max
- 17.91
- GWRE
- 9.04
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
IBM
Software & Services industry group
3.31
- Max
- 17.91
- Q3
- 8.78
- Median
- 4.25
- IBM
- 3.31
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
IBM (IBM) at 6.52 is valued about in line with its industry on P/B ratio, while Guidewire Software (GWRE) at 11.09 carries an above-peer premium to book — GWRE is pricier on assets.
GWRE
Software & Services industry group
11.09
- Max
- 16.63
- GWRE
- 11.09
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
IBM
Software & Services industry group
6.52
- Max
- 16.63
- Q3
- 8.50
- IBM
- 6.52
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | GWRE | IBM |
|---|---|---|
| P/E Ratio (TTM) | 99.02 | 20.90 |
| P/S Ratio (TTM) | 9.04 | 3.31 |
| P/B Ratio (MRQ) | 11.09 | 6.52 |
| Free Cash Flow Yield (TTM) | 2.57% | 5.34% |