GWRE vs. MSFT: Guidewire Software vs. Microsoft Stock Comparison

November 11, 2026

How do Guidewire Software (GWRE) and Microsoft (MSFT) 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 Microsoft (MSFT) both belong to the Software industry, though GWRE is classified under Application Software while MSFT falls under Systems Software.

Company profile comparison for Guidewire Software (GWRE) and Microsoft (MSFT)
Profile Item	GWRE	MSFT
Name	Guidewire Software Inc.	Microsoft Corporation Common Stock
Country/Region	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry Group	Software & Services	Software & Services
GICS Industry	Software	Software
GICS Sub-Industry	Application Software	Systems Software
Market Capitalization	13.34 billion USD	3,940.41 billion USD
Currency	USD	USD
Exchange	NYSE	Nasdaq
Listing Date	January 25, 2012	March 13, 1986
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

GWRE

MSFT

GSPC

Guidewire Software (GWRE) vs. Microsoft (MSFT), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Guidewire Software (GWRE) and Microsoft (MSFT). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Guidewire Software (GWRE) and Microsoft (MSFT). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Guidewire Software (GWRE) and Microsoft (MSFT)
Metric	GWRE	MSFT
Total Return (1Y)	-25.97%	10.30%
Total Return (3Y, Annualized)	21.68%	15.53%
Total Return (5Y, Annualized)	4.78%	11.01%

Risk Profile

Drawdown History

GWRE

MSFT

GSPC

Guidewire Software (GWRE) vs. Microsoft (MSFT), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Guidewire Software (GWRE) and Microsoft (MSFT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Guidewire Software (GWRE) and Microsoft (MSFT)
Metric	GWRE	MSFT
Volatility (1Y, Annualized)	62.03%	33.91%
Beta (5Y)	0.99	1.03
Max Drawdown (5Y)	-60.79%	-37.15%
Avg. Volume (3M)	1.29M	22.95M

Risk-Adjusted Performance

Risk-Return Positioning

GWRE and MSFT are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Guidewire Software (GWRE) and Microsoft (MSFT)
Metric	GWRE	MSFT
Sharpe Ratio (1Y)	-0.49	0.18
Sortino Ratio (1Y)	-0.68	0.28

Profitability

ROE (TTM)

Microsoft (MSFT) at 34.22% sits in the top ROE quartile, while Guidewire Software (GWRE) at 10.51% is closer to the peer norm — stronger capital efficiency for MSFT.

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%

MSFT

Software & Services industry group

34.22%

Max: 53.85%
MSFT: 34.22%
Q3: 17.90%
Median: 6.59%
Q1: -9.59%
Min: -50.52%

Guidewire Software (GWRE) vs. Microsoft (MSFT): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Microsoft (MSFT) at 41.17% 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%

MSFT

Software & Services industry group

41.17%

MSFT: 41.17%
Max: 41.17%
Q3: 15.28%
Median: 4.63%
Q1: -5.42%
Min: -33.17%

Guidewire Software (GWRE) vs. Microsoft (MSFT): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Microsoft (MSFT) at 49.76% turns sales into operating profit above its industry’s benchmark range, while Guidewire Software (GWRE) at 15.16% operates around its industry’s norm.

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%

MSFT

Software & Services industry group

49.76%

MSFT: 49.76%
Max: 46.89%
Q3: 17.64%
Median: 8.73%
Q1: -2.13%
Min: -30.45%

Guidewire Software (GWRE) vs. Microsoft (MSFT): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Guidewire Software (GWRE) and Microsoft (MSFT)
Metric	GWRE	MSFT
ROE (TTM)	10.51%	34.22%
ROA (TTM)	3.54%	14.41%
Net Margin (TTM)	9.44%	41.17%
Operating Margin (TTM)	15.16%	49.76%
Gross Margin (TTM)	64.21%	67.66%

Growth

Revenue Growth

Both Guidewire Software (GWRE) at 22.70% and Microsoft (MSFT) at 17.79% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Guidewire Software (GWRE) vs. Microsoft (MSFT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Guidewire Software (GWRE) at 101.23% sits in the top EPS growth quartile, while Microsoft (MSFT) at 31.60% is closer to the peer norm — faster per-share earnings growth for GWRE.

Guidewire Software (GWRE) vs. Microsoft (MSFT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Guidewire Software (GWRE) and Microsoft (MSFT)
Metric	GWRE	MSFT
Revenue Growth (YoY)	22.70%	17.79%
Revenue Growth (3Y CAGR)	17.68%	16.12%
EPS Growth (YoY)	101.23%	31.60%
EPS Growth (3Y CAGR)	--	22.86%

Financial Strength

Current Ratio (MRQ)

Both Guidewire Software (GWRE) at 1.79 and Microsoft (MSFT) at 1.23 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

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

MSFT

Software & Services industry group

1.23

Max: 5.11
Q3: 2.77
Median: 1.67
MSFT: 1.23
Q1: 1.01
Min: 0.03

Guidewire Software (GWRE) vs. Microsoft (MSFT): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Guidewire Software (GWRE) at 0.60 and Microsoft (MSFT) at 0.28 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

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

MSFT

Software & Services industry group

0.28

Max: 2.52
Q3: 1.13
Median: 0.40
MSFT: 0.28
Q1: 0.07
Min: 0.00

Guidewire Software (GWRE) vs. Microsoft (MSFT): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Guidewire Software (GWRE) and Microsoft (MSFT)
Metric	GWRE	MSFT
Current Ratio (MRQ)	1.79	1.23
Debt / Equity (MRQ)	0.60	0.28
Net Debt / EBITDA	-0.38	0.34

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 Microsoft (MSFT) reports a yield of 0.69%, 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%

MSFT

Software & Services industry group

0.69%

MSFT: 0.69%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Guidewire Software (GWRE) vs. Microsoft (MSFT): A comparison of their dividend yield against the Software & Services industry group benchmark.

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 Microsoft (MSFT) reports a payout of 19.00%, 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%

MSFT

Software & Services industry group

19.00%

MSFT: 19.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Guidewire Software (GWRE) vs. Microsoft (MSFT): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Guidewire Software (GWRE) and Microsoft (MSFT)
Metric	GWRE	MSFT
Dividend Yield (TTM)	0.00%	0.69%
Dividend Payout Ratio (TTM)	0.00%	19.00%

Valuation

P/E Ratio (TTM)

Microsoft (MSFT) at 27.69 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

MSFT

Software & Services industry group

27.69

Max: 112.94
Q3: 60.32
Median: 32.91
MSFT: 27.69
Q1: 18.77
Min: 6.69

Guidewire Software (GWRE) vs. Microsoft (MSFT): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Both Guidewire Software (GWRE) at 9.04 and Microsoft (MSFT) at 11.37 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

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

MSFT

Software & Services industry group

11.37

Max: 17.91
MSFT: 11.37
Q3: 8.78
Median: 4.25
Q1: 2.23
Min: 0.02

Guidewire Software (GWRE) vs. Microsoft (MSFT): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Microsoft (MSFT) at 8.38 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

MSFT

Software & Services industry group

8.38

Max: 16.63
Q3: 8.50
MSFT: 8.38
Median: 4.30
Q1: 1.92
Min: -3.90

Guidewire Software (GWRE) vs. Microsoft (MSFT): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Guidewire Software (GWRE) and Microsoft (MSFT)
Metric	GWRE	MSFT
P/E Ratio (TTM)	99.02	27.69
P/S Ratio (TTM)	9.04	11.37
P/B Ratio (MRQ)	11.09	8.38
Free Cash Flow Yield (TTM)	2.57%	0.08%