Analyzing Oracle Corporation (ORCL) and Guidewire Software (GWRE)
Oracle Corporation (NYSE: ORCL) and Guidewire Software (NYSE:GWRE) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.
This table compares Oracle Corporation and Guidewire Software’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Oracle Corporation and Guidewire Software’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Oracle Corporation||$37.73 billion||5.67||$14.67 billion||$2.20||23.51|
|Guidewire Software||$474.36 million||12.55||$25.35 million||$0.28||285.93|
Oracle Corporation has higher revenue and earnings than Guidewire Software. Oracle Corporation is trading at a lower price-to-earnings ratio than Guidewire Software, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
58.7% of Oracle Corporation shares are owned by institutional investors. 29.0% of Oracle Corporation shares are owned by company insiders. Comparatively, 1.0% of Guidewire Software shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Oracle Corporation pays an annual dividend of $0.76 per share and has a dividend yield of 1.5%. Guidewire Software does not pay a dividend. Oracle Corporation pays out 34.5% of its earnings in the form of a dividend. Oracle Corporation has increased its dividend for 5 consecutive years.
This is a breakdown of current recommendations and price targets for Oracle Corporation and Guidewire Software, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Oracle Corporation presently has a consensus price target of $51.80, suggesting a potential upside of 0.14%. Guidewire Software has a consensus price target of $77.38, suggesting a potential downside of 3.35%. Given Oracle Corporation’s higher possible upside, equities research analysts plainly believe Oracle Corporation is more favorable than Guidewire Software.
Volatility and Risk
Oracle Corporation has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Guidewire Software has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.
Oracle Corporation beats Guidewire Software on 12 of the 18 factors compared between the two stocks.
Oracle Corporation Company Profile
Oracle Corporation (Oracle) provides products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure. The Company’s businesses include cloud and on-premise software, hardware and services. Its cloud and on-premise software business consists of three segments, including cloud software and on-premise software, which includes Software as a Service (SaaS) and Platform as a Service (PaaS) offerings, cloud infrastructure as a service (IaaS) and software license updates and product support. Its hardware business consists of two segments, including hardware products and hardware support. The Company’s services business includes the remainder of the Company’s segments. Its services business includes activities, such as consulting services, enhanced support services and education services, among others.
Guidewire Software Company Profile
Guidewire Software, Inc. is a provider of software products for property and casualty (P&C) insurers. The Company’s software serves as a technology platform for P&C insurance carriers. The Company’s InsurancePlatform consists of three elements: core transaction processing, data management and analytics, and digital engagement. The Company sells its products to a range of global P&C insurance carriers ranging from global insurers to national carriers to regional carriers. The Company’s core transaction processing includes Guidewire InsuranceSuite, Guidewire PolicyCenter, Guidewire ClaimCenter, Guidewire BillingCenter and InsuranceSuite Add-on Modules. The Company’s data management and analytics includes Guidewire DataHub, Guidewire InfoCenter, Guidewire Live and Guidewire Predictive Analytics. The Company’s digital engagement includes Guidewire Digital Portals.
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