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

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

Company Profile

GWRE is a standard domestic listing, while NTES trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolGWRENTES
Company NameGuidewire Software, Inc.NetEase, Inc.
CountryUnited StatesChina
GICS SectorInformation TechnologyCommunication Services
GICS IndustrySoftwareEntertainment
Market Capitalization19.50 billion USD100.28 billion USD
ExchangeNYSENasdaqGS
Listing DateJanuary 25, 2012June 30, 2000
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of GWRE and NTES 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. NTES: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolGWRENTES
5-Day Price Return-0.13%0.46%
13-Week Price Return-0.24%18.18%
26-Week Price Return25.26%46.68%
52-Week Price Return26.64%54.63%
Month-to-Date Return0.37%1.28%
Year-to-Date Return36.85%72.55%
10-Day Avg. Volume0.65M0.55M
3-Month Avg. Volume0.83M0.75M
3-Month Volatility44.57%30.00%
Beta1.060.69

Profitability

Return on Equity (TTM)

GWRE

5.21%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

GWRE’s Return on Equity of 5.21% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

NTES

24.25%

Entertainment Industry

Max
42.50%
Q3
24.06%
Median
13.69%
Q1
5.35%
Min
-17.95%

In the upper quartile for the Entertainment industry, NTES’s Return on Equity of 24.25% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

GWRE vs. NTES: A comparison of their Return on Equity (TTM) against their respective Software and Entertainment industry benchmarks.

Net Profit Margin (TTM)

GWRE

5.81%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

GWRE’s Net Profit Margin of 5.81% 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.

NTES

31.19%

Entertainment Industry

Max
45.33%
Q3
24.40%
Median
13.94%
Q1
4.28%
Min
-23.67%

A Net Profit Margin of 31.19% places NTES in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.

GWRE vs. NTES: A comparison of their Net Profit Margin (TTM) against their respective Software and Entertainment industry benchmarks.

Operating Profit Margin (TTM)

GWRE

-1.06%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

GWRE has a negative Operating Profit Margin of -1.06%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

NTES

31.43%

Entertainment Industry

Max
41.77%
Q3
28.26%
Median
16.13%
Q1
8.03%
Min
-3.93%

An Operating Profit Margin of 31.43% places NTES in the upper quartile for the Entertainment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

GWRE vs. NTES: A comparison of their Operating Profit Margin (TTM) against their respective Software and Entertainment industry benchmarks.

Profitability at a Glance

SymbolGWRENTES
Return on Equity (TTM)5.21%24.25%
Return on Assets (TTM)2.70%17.31%
Net Profit Margin (TTM)5.81%31.19%
Operating Profit Margin (TTM)-1.06%31.43%
Gross Profit Margin (TTM)62.54%63.17%

Financial Strength

Current Ratio (MRQ)

GWRE

2.77

Software Industry

Max
4.29
Q3
2.37
Median
1.40
Q1
1.03
Min
0.25

GWRE’s Current Ratio of 2.77 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.

NTES

3.23

Entertainment Industry

Max
6.76
Q3
4.02
Median
1.55
Q1
0.86
Min
0.38

NTES’s Current Ratio of 3.23 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

GWRE vs. NTES: A comparison of their Current Ratio (MRQ) against their respective Software and Entertainment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

GWRE

0.46

Software Industry

Max
2.16
Q3
0.86
Median
0.31
Q1
0.00
Min
0.00

GWRE’s Debt-to-Equity Ratio of 0.46 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.

NTES

0.08

Entertainment Industry

Max
1.54
Q3
0.77
Median
0.16
Q1
0.02
Min
0.00

NTES’s Debt-to-Equity Ratio of 0.08 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

GWRE vs. NTES: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Entertainment industry benchmarks.

Interest Coverage Ratio (TTM)

GWRE

-7.00

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
Min
-71.23

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.

NTES

161.13

Entertainment Industry

Max
87.17
Q3
35.59
Median
7.06
Q1
1.13
Min
-44.74

With an Interest Coverage Ratio of 161.13, NTES demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.

GWRE vs. NTES: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Entertainment industry benchmarks.

Financial Strength at a Glance

SymbolGWRENTES
Current Ratio (MRQ)2.773.23
Quick Ratio (MRQ)2.613.10
Debt-to-Equity Ratio (MRQ)0.460.08
Interest Coverage Ratio (TTM)-7.00161.13

Growth

Revenue Growth

GWRE vs. NTES: 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. NTES: 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
0.22%
Q3
0.11%
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.

NTES

1.93%

Entertainment Industry

Max
2.90%
Q3
1.29%
Median
0.59%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.93%, NTES offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.

GWRE vs. NTES: A comparison of their Dividend Yield (TTM) against their respective Software and Entertainment industry benchmarks.

Dividend Payout Ratio (TTM)

GWRE

0.00%

Software Industry

Max
3.29%
Q3
2.41%
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.

NTES

36.90%

Entertainment Industry

Max
82.30%
Q3
38.45%
Median
29.74%
Q1
0.00%
Min
0.00%

NTES’s Dividend Payout Ratio of 36.90% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

GWRE vs. NTES: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Entertainment industry benchmarks.

Dividend at a Glance

SymbolGWRENTES
Dividend Yield (TTM)0.00%1.93%
Dividend Payout Ratio (TTM)0.00%36.90%

Valuation

Price-to-Earnings Ratio (TTM)

GWRE

274.89

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

At 274.89, 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.

NTES

19.11

Entertainment Industry

Max
92.09
Q3
54.51
Median
28.92
Q1
19.75
Min
2.96

In the lower quartile for the Entertainment industry, NTES’s P/E Ratio of 19.11 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

GWRE vs. NTES: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Entertainment industry benchmarks.

Price-to-Sales Ratio (TTM)

GWRE

15.96

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

GWRE’s P/S Ratio of 15.96 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.

NTES

5.96

Entertainment Industry

Max
12.34
Q3
7.67
Median
5.06
Q1
2.72
Min
0.67

NTES’s P/S Ratio of 5.96 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

GWRE vs. NTES: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Entertainment industry benchmarks.

Price-to-Book Ratio (MRQ)

GWRE

13.07

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
Min
0.38

GWRE’s P/B Ratio of 13.07 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.

NTES

4.06

Entertainment Industry

Max
22.84
Q3
10.54
Median
6.60
Q1
2.30
Min
0.65

NTES’s P/B Ratio of 4.06 is within the conventional range for the Entertainment 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 vs. NTES: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Entertainment industry benchmarks.

Valuation at a Glance

SymbolGWRENTES
Price-to-Earnings Ratio (TTM)274.8919.11
Price-to-Sales Ratio (TTM)15.965.96
Price-to-Book Ratio (MRQ)13.074.06
Price-to-Free Cash Flow Ratio (TTM)55.1714.77