Guidewire Software (NYSE: GWRE) and ChannelAdvisor Corporation (NYSE:ECOM) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Guidewire Software and ChannelAdvisor Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guidewire Software 0 3 5 1 2.78
ChannelAdvisor Corporation 0 4 2 0 2.33

Guidewire Software currently has a consensus target price of $75.29, suggesting a potential upside of 0.01%. ChannelAdvisor Corporation has a consensus target price of $15.50, suggesting a potential upside of 34.78%. Given ChannelAdvisor Corporation’s higher probable upside, analysts plainly believe ChannelAdvisor Corporation is more favorable than Guidewire Software.

Insider & Institutional Ownership

81.7% of ChannelAdvisor Corporation shares are held by institutional investors. 1.0% of Guidewire Software shares are held by company insiders. Comparatively, 11.3% of ChannelAdvisor Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Guidewire Software and ChannelAdvisor Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Guidewire Software $474.36 million 11.80 $25.35 million $0.14 537.71
ChannelAdvisor Corporation $118.09 million 2.57 -$4.61 million ($0.35) -32.86

Guidewire Software has higher revenue and earnings than ChannelAdvisor Corporation. ChannelAdvisor 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.

Risk and Volatility

Guidewire Software has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, ChannelAdvisor Corporation has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500.

Profitability

This table compares Guidewire Software and ChannelAdvisor Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Guidewire Software 2.19% 1.97% 1.69%
ChannelAdvisor Corporation -7.42% -7.63% -4.68%

Summary

Guidewire Software beats ChannelAdvisor Corporation on 11 of the 14 factors compared between the two stocks.

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.

ChannelAdvisor Corporation Company Profile

Channeladvisor Corporation is a provider of Software as a service (SaaS) solutions. The Company’s SaaS solutions enable retailer and branded manufacturer customers to integrate, manage and optimize their merchandise sales via hundreds of online channels. The Company’s platform enable its customers to connect with new and existing sources of demand for their products, including e-commerce marketplaces, such as Amazon, eBay, Jet.com, Newegg, Sears and Walmart, search engines and comparison shopping Websites, such as Google, Microsoft’s Bing and Nextag, and social channels, such as Facebook, Instagram and Pinterest. Its suite of solutions provides customers with a single, integrated user interface to manage their product listings, inventory availability, pricing optimization, search terms, data analytics and other functions. It also offers solutions that allow manufacturers to send their Web visitors or digital marketing audiences directly to authorized resellers.

Receive News & Stock Ratings for Guidewire Software Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Guidewire Software Inc. and related stocks with our FREE daily email newsletter.