Seek Returns logo

GWRE vs. NTAP: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at GWRE and NTAP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolGWRENTAP
Company NameGuidewire Software, Inc.NetApp, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySoftwareTechnology Hardware, Storage & Peripherals
Market Capitalization18.20 billion USD21.69 billion USD
ExchangeNYSENasdaqGS
Listing DateJanuary 25, 2012November 21, 1995
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of GWRE and NTAP 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.

GWRE vs. NTAP: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolGWRENTAP
5-Day Price Return3.48%-1.04%
13-Week Price Return0.34%6.79%
26-Week Price Return-0.23%-7.91%
52-Week Price Return45.65%-17.68%
Month-to-Date Return-4.45%4.12%
Year-to-Date Return28.22%-6.60%
10-Day Avg. Volume0.65M1.63M
3-Month Avg. Volume0.78M1.92M
3-Month Volatility38.37%23.33%
Beta1.211.45

Profitability

Return on Equity (TTM)

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.

NTAP

123.03%

Technology Hardware, Storage & Peripherals Industry

Max
47.24%
Q3
29.40%
Median
9.11%
Q1
6.06%
Min
-0.79%

NTAP’s Return on Equity of 123.03% is exceptionally high, placing it well beyond the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

GWRE vs. NTAP: A comparison of their Return on Equity (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Net Profit Margin (TTM)

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.

NTAP

18.05%

Technology Hardware, Storage & Peripherals Industry

Max
13.86%
Q3
8.17%
Median
4.62%
Q1
3.65%
Min
-0.21%

NTAP’s Net Profit Margin of 18.05% is exceptionally high, placing it well beyond the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

GWRE vs. NTAP: A comparison of their Net Profit Margin (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Operating Profit Margin (TTM)

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.

NTAP

20.34%

Technology Hardware, Storage & Peripherals Industry

Max
17.80%
Q3
10.33%
Median
6.31%
Q1
4.86%
Min
2.53%

NTAP’s Operating Profit Margin of 20.34% is exceptionally high, placing it well above the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

GWRE vs. NTAP: A comparison of their Operating Profit Margin (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Profitability at a Glance

SymbolGWRENTAP
Return on Equity (TTM)2.64%123.03%
Return on Assets (TTM)1.41%12.44%
Net Profit Margin (TTM)3.04%18.05%
Operating Profit Margin (TTM)-2.79%20.34%
Gross Profit Margin (TTM)62.16%70.19%

Financial Strength

Current Ratio (MRQ)

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.

NTAP

1.26

Technology Hardware, Storage & Peripherals Industry

Max
2.47
Q3
1.98
Median
1.40
Q1
1.26
Min
0.70

NTAP’s Current Ratio of 1.26 aligns with the median group of the Technology Hardware, Storage & Peripherals industry, indicating that its short-term liquidity is in line with its sector peers.

GWRE vs. NTAP: A comparison of their Current Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Debt-to-Equity Ratio (MRQ)

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.

NTAP

3.11

Technology Hardware, Storage & Peripherals Industry

Max
1.47
Q3
0.93
Median
0.32
Q1
0.19
Min
0.00

With a Debt-to-Equity Ratio of 3.11, NTAP operates with exceptionally high leverage compared to the Technology Hardware, Storage & Peripherals industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

GWRE vs. NTAP: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Interest Coverage Ratio (TTM)

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.

NTAP

17.59

Technology Hardware, Storage & Peripherals Industry

Max
204.63
Q3
90.22
Median
21.70
Q1
6.79
Min
-23.93

NTAP’s Interest Coverage Ratio of 17.59 is positioned comfortably within the norm for the Technology Hardware, Storage & Peripherals industry, indicating a standard and healthy capacity to cover its interest payments.

GWRE vs. NTAP: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Financial Strength at a Glance

SymbolGWRENTAP
Current Ratio (MRQ)3.231.26
Quick Ratio (MRQ)3.041.22
Debt-to-Equity Ratio (MRQ)0.493.11
Interest Coverage Ratio (TTM)-7.0017.59

Growth

Revenue Growth

GWRE vs. NTAP: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

GWRE vs. NTAP: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

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.

NTAP

1.96%

Technology Hardware, Storage & Peripherals Industry

Max
4.50%
Q3
3.66%
Median
1.90%
Q1
0.00%
Min
0.00%

NTAP’s Dividend Yield of 1.96% is consistent with its peers in the Technology Hardware, Storage & Peripherals industry, providing a dividend return that is standard for its sector.

GWRE vs. NTAP: A comparison of their Dividend Yield (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend Payout Ratio (TTM)

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.

NTAP

35.75%

Technology Hardware, Storage & Peripherals Industry

Max
142.87%
Q3
66.07%
Median
42.79%
Q1
0.00%
Min
0.00%

NTAP’s Dividend Payout Ratio of 35.75% is within the typical range for the Technology Hardware, Storage & Peripherals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

GWRE vs. NTAP: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend at a Glance

SymbolGWRENTAP
Dividend Yield (TTM)0.00%1.96%
Dividend Payout Ratio (TTM)0.00%35.75%

Valuation

Price-to-Earnings Ratio (TTM)

GWRE

519.59

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

At 519.59, 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.

NTAP

18.26

Technology Hardware, Storage & Peripherals Industry

Max
43.16
Q3
27.56
Median
17.85
Q1
12.48
Min
6.21

NTAP’s P/E Ratio of 18.26 is within the middle range for the Technology Hardware, Storage & Peripherals industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

GWRE vs. NTAP: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Price-to-Sales Ratio (TTM)

GWRE

15.81

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

GWRE’s P/S Ratio of 15.81 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.

NTAP

3.30

Technology Hardware, Storage & Peripherals Industry

Max
4.27
Q3
1.99
Median
0.93
Q1
0.45
Min
0.04

NTAP’s P/S Ratio of 3.30 is in the upper echelon for the Technology Hardware, Storage & Peripherals 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.

GWRE vs. NTAP: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Price-to-Book Ratio (MRQ)

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.

NTAP

17.30

Technology Hardware, Storage & Peripherals Industry

Max
12.51
Q3
6.11
Median
1.73
Q1
1.01
Min
0.31

At 17.30, NTAP’s P/B Ratio is at an extreme premium to the Technology Hardware, Storage & Peripherals industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

GWRE vs. NTAP: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Valuation at a Glance

SymbolGWRENTAP
Price-to-Earnings Ratio (TTM)519.5918.26
Price-to-Sales Ratio (TTM)15.813.30
Price-to-Book Ratio (MRQ)12.6117.30
Price-to-Free Cash Flow Ratio (TTM)60.0616.19