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GWRE vs. ZS: Guidewire Software vs. Zscaler Stock Comparison

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

Company profile comparison for Guidewire Software (GWRE) and Zscaler (ZS)
Profile ItemGWREZS
NameGuidewire Software Inc.Zscaler Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustryApplication SoftwareSystems Software
Market Capitalization13.34 billion USD32.23 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateJanuary 25, 2012March 16, 2018
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

GWRE
ZS
GSPC
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Guidewire Software (GWRE) vs. Zscaler (ZS), 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 Zscaler (ZS). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Guidewire Software (GWRE) and Zscaler (ZS)
MetricGWREZS
Total Return (1Y)-25.97%-37.61%
Total Return (3Y, Annualized)21.68%5.36%
Total Return (5Y, Annualized)4.78%-10.75%

Risk Profile

Drawdown History

GWRE
ZS
GSPC
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Guidewire Software (GWRE) vs. Zscaler (ZS), 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 Zscaler (ZS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Guidewire Software (GWRE) and Zscaler (ZS)
MetricGWREZS
Volatility (1Y, Annualized)62.03%68.66%
Beta (5Y)0.990.88
Max Drawdown (5Y)-60.79%-76.41%
Avg. Volume (3M)1.29M2.92M

Risk-Adjusted Performance

Risk-Return Positioning

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GWRE and ZS 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 Zscaler (ZS)
MetricGWREZS
Sharpe Ratio (1Y)-0.49-0.61
Sortino Ratio (1Y)-0.68-0.79

Profitability

ROE (TTM)

Zscaler (ZS) reports a negative ROE of -2.87%; negative ROE can reflect losses or negative shareholders’ equity, so it is harder to read as capital efficiency. Meanwhile Guidewire Software (GWRE) reports 10.51%, ranking against industry peers normally.

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%

ZS

Software & Services industry group

-2.87%

Max
53.85%
Q3
17.90%
Median
6.59%
ZS
-2.87%
Q1
-9.59%
Min
-50.52%
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Guidewire Software (GWRE) vs. Zscaler (ZS): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Zscaler (ZS) reports a negative net margin of -1.89%, usually indicating a net loss over the period. Meanwhile Guidewire Software (GWRE) reports 9.44%, ranking against industry peers normally.

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%

ZS

Software & Services industry group

-1.89%

Max
41.17%
Q3
15.28%
Median
4.63%
ZS
-1.89%
Q1
-5.42%
Min
-33.17%
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Guidewire Software (GWRE) vs. Zscaler (ZS): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Zscaler (ZS) reports a negative operating margin of -1.01%, usually indicating that operating costs exceeded revenue at the operating-income line. Meanwhile Guidewire Software (GWRE) reports 15.16%, ranking against industry peers normally.

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%

ZS

Software & Services industry group

-1.01%

Max
46.89%
Q3
17.64%
Median
8.73%
ZS
-1.01%
Q1
-2.13%
Min
-30.45%
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Guidewire Software (GWRE) vs. Zscaler (ZS): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Guidewire Software (GWRE) and Zscaler (ZS)
MetricGWREZS
ROE (TTM)10.51%-2.87%
ROA (TTM)3.54%-1.03%
Net Margin (TTM)9.44%-1.89%
Operating Margin (TTM)15.16%-1.01%
Gross Margin (TTM)64.21%76.87%

Growth

Revenue Growth

Both Guidewire Software (GWRE) at 22.70% and Zscaler (ZS) at 25.42% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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

EPS Growth

Only one side can be read here: Guidewire Software (GWRE) reports EPS growth of 101.23%, ranked against its industry; Zscaler (ZS) has no EPS growth figure this period.

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

Growth Metrics

Growth metrics for Guidewire Software (GWRE) and Zscaler (ZS)
MetricGWREZS
Revenue Growth (YoY)22.70%25.42%
Revenue Growth (3Y CAGR)17.68%27.51%
EPS Growth (YoY)101.23%--
EPS Growth (3Y CAGR)----

Financial Strength

Current Ratio (MRQ)

Both Guidewire Software (GWRE) at 1.79 and Zscaler (ZS) at 1.70 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

ZS

Software & Services industry group

1.70

Max
5.11
Q3
2.77
ZS
1.70
Median
1.67
Q1
1.01
Min
0.03
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Guidewire Software (GWRE) vs. Zscaler (ZS): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Guidewire Software (GWRE) at 0.60 and Zscaler (ZS) at 0.72 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

ZS

Software & Services industry group

0.72

Max
2.52
Q3
1.13
ZS
0.72
Median
0.40
Q1
0.07
Min
0.00
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Guidewire Software (GWRE) vs. Zscaler (ZS): 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 Zscaler (ZS)
MetricGWREZS
Current Ratio (MRQ)1.791.70
Debt / Equity (MRQ)0.600.72
Net Debt / EBITDA-0.38-36.63

Dividends

Dividend Yield (TTM)

Neither Guidewire Software (GWRE) nor Zscaler (ZS) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.

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%

ZS

Software & Services industry group

0.00%

ZS
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Guidewire Software (GWRE) vs. Zscaler (ZS): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Neither Guidewire Software (GWRE) nor Zscaler (ZS) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.

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%

ZS

Software & Services industry group

0.00%

ZS
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Guidewire Software (GWRE) vs. Zscaler (ZS): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Guidewire Software (GWRE) and Zscaler (ZS)
MetricGWREZS
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

An earnings multiple is available for just one side: Guidewire Software (GWRE) trades at 99.02 times trailing earnings, ranked against its peers, while Zscaler (ZS) has no P/E ratio this period.

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

ZS

Software & Services industry group

--

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
ZS
--
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Guidewire Software (GWRE) vs. Zscaler (ZS): ZS does not report P/E ratio, so it has no value marker; GWRE is benchmarked against the Software & Services industry group.

P/S Ratio (TTM)

Both Guidewire Software (GWRE) at 9.04 and Zscaler (ZS) at 9.61 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

ZS

Software & Services industry group

9.61

Max
17.91
ZS
9.61
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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Guidewire Software (GWRE) vs. Zscaler (ZS): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Both Guidewire Software (GWRE) at 11.09 and Zscaler (ZS) at 12.40 carry a premium to book value versus peers, sitting in the upper P/B ratio quartile of their industries.

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

ZS

Software & Services industry group

12.40

Max
16.63
ZS
12.40
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90
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Guidewire Software (GWRE) vs. Zscaler (ZS): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Guidewire Software (GWRE) and Zscaler (ZS)
MetricGWREZS
P/E Ratio (TTM)99.02--
P/S Ratio (TTM)9.049.61
P/B Ratio (MRQ)11.0912.40
Free Cash Flow Yield (TTM)2.57%3.34%