GWRE vs. TTD: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at GWRE and TTD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | GWRE | TTD |
|---|---|---|
| Company Name | Guidewire Software, Inc. | The Trade Desk, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Communication Services |
| GICS Industry | Software | Media |
| Market Capitalization | 17.80 billion USD | 25.61 billion USD |
| Exchange | NYSE | NasdaqGM |
| Listing Date | January 25, 2012 | September 21, 2016 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of GWRE and TTD 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 | GWRE | TTD |
|---|---|---|
| 5-Day Price Return | -1.05% | -0.30% |
| 13-Week Price Return | 1.62% | -29.54% |
| 26-Week Price Return | -0.90% | -31.77% |
| 52-Week Price Return | 44.17% | -49.24% |
| Month-to-Date Return | -6.57% | -39.78% |
| Year-to-Date Return | 25.38% | -55.44% |
| 10-Day Avg. Volume | 0.59M | 16.03M |
| 3-Month Avg. Volume | 0.78M | 12.59M |
| 3-Month Volatility | 38.31% | 86.74% |
| Beta | 1.20 | 1.45 |
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.
TTD
15.19%
Media Industry
- Max
- 34.77%
- Q3
- 16.01%
- Median
- 10.70%
- Q1
- 2.80%
- Min
- -2.36%
TTD’s Return on Equity of 15.19% is on par with the norm for the Media industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
TTD
15.57%
Media Industry
- Max
- 16.04%
- Q3
- 10.15%
- Median
- 5.18%
- Q1
- 2.39%
- Min
- -3.66%
A Net Profit Margin of 15.57% places TTD in the upper quartile for the Media industry, signifying strong profitability and more effective cost management than most of its peers.
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.
TTD
17.73%
Media Industry
- Max
- 24.65%
- Q3
- 13.68%
- Median
- 8.96%
- Q1
- 4.53%
- Min
- -8.09%
An Operating Profit Margin of 17.73% places TTD in the upper quartile for the Media industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | GWRE | TTD |
|---|---|---|
| Return on Equity (TTM) | 2.64% | 15.19% |
| Return on Assets (TTM) | 1.41% | 7.17% |
| Net Profit Margin (TTM) | 3.04% | 15.57% |
| Operating Profit Margin (TTM) | -2.79% | 17.73% |
| Gross Profit Margin (TTM) | 62.16% | 79.41% |
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.
TTD
1.71
Media Industry
- Max
- 2.97
- Q3
- 1.79
- Median
- 1.39
- Q1
- 0.92
- Min
- 0.24
TTD’s Current Ratio of 1.71 aligns with the median group of the Media industry, indicating that its short-term liquidity is in line with its sector peers.
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.
TTD
0.03
Media Industry
- Max
- 2.02
- Q3
- 1.06
- Median
- 0.58
- Q1
- 0.31
- Min
- 0.00
Falling into the lower quartile for the Media industry, TTD’s Debt-to-Equity Ratio of 0.03 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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.
TTD
44.57
Media Industry
- Max
- 44.57
- Q3
- 23.07
- Median
- 4.52
- Q1
- 2.14
- Min
- -10.82
TTD’s Interest Coverage Ratio of 44.57 is in the upper quartile for the Media industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | GWRE | TTD |
|---|---|---|
| Current Ratio (MRQ) | 3.23 | 1.71 |
| Quick Ratio (MRQ) | 3.04 | 1.68 |
| Debt-to-Equity Ratio (MRQ) | 0.49 | 0.03 |
| Interest Coverage Ratio (TTM) | -7.00 | 44.57 |
Growth
Revenue Growth
EPS Growth
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.
TTD
0.00%
Media Industry
- Max
- 7.76%
- Q3
- 4.16%
- Median
- 1.67%
- Q1
- 0.00%
- Min
- 0.00%
TTD 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)
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.
TTD
0.00%
Media Industry
- Max
- 165.03%
- Q3
- 96.17%
- Median
- 45.64%
- Q1
- 14.80%
- Min
- 0.00%
TTD 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 | GWRE | TTD |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
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.
TTD
61.22
Media Industry
- Max
- 49.10
- Q3
- 35.07
- Median
- 17.34
- Q1
- 10.39
- Min
- 5.81
At 61.22, TTD’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Media 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)
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.
TTD
9.53
Media Industry
- Max
- 3.23
- Q3
- 1.85
- Median
- 1.05
- Q1
- 0.78
- Min
- 0.22
With a P/S Ratio of 9.53, TTD trades at a valuation that eclipses even the highest in the Media industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
TTD
13.12
Media Industry
- Max
- 4.30
- Q3
- 2.57
- Median
- 1.83
- Q1
- 1.19
- Min
- 0.51
At 13.12, TTD’s P/B Ratio is at an extreme premium to the Media 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.
Valuation at a Glance
| Symbol | GWRE | TTD |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 519.59 | 61.22 |
| Price-to-Sales Ratio (TTM) | 15.81 | 9.53 |
| Price-to-Book Ratio (MRQ) | 12.61 | 13.12 |
| Price-to-Free Cash Flow Ratio (TTM) | 60.06 | 34.25 |