Analyzing BlackBerry (BB) and Guidewire Software (GWRE)
BlackBerry (NYSE: GWRE) and Guidewire Software (NYSE:GWRE) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.
Earnings & Valuation
This table compares BlackBerry and Guidewire Software’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BlackBerry||$932.00 million||5.93||$405.00 million||$0.05||205.80|
|Guidewire Software||$514.28 million||14.87||$21.22 million||$0.40||238.15|
Risk & Volatility
BlackBerry has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Guidewire Software has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.
Institutional & Insider Ownership
57.8% of BlackBerry shares are owned by institutional investors. 22.7% of BlackBerry shares are owned by insiders. Comparatively, 0.7% of Guidewire Software shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares BlackBerry and Guidewire Software’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for BlackBerry and Guidewire Software, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
BlackBerry presently has a consensus target price of $11.95, suggesting a potential upside of 16.18%. Guidewire Software has a consensus target price of $97.22, suggesting a potential upside of 2.06%. Given BlackBerry’s higher probable upside, equities research analysts plainly believe BlackBerry is more favorable than Guidewire Software.
BlackBerry beats Guidewire Software on 8 of the 14 factors compared between the two stocks.
BlackBerry Limited operates as an enterprise software and services company focused on securing and managing endpoints in the Internet of Things. It offers BlackBerry Enterprise Mobility Suite, which combines and integrates mobile security, management, productivity, and collaboration solutions, such as BlackBerry UEM, BlackBerry Dynamics, and BlackBerry Workspaces; BlackBerry AtHoc, a secure and networked crisis communications solution; SecuSUITE for Government, a voice encryption software solution; BlackBerry Enterprise Consulting and BlackBerry Cybersecurity Consulting; and BBM Enterprise, an enterprise-grade secure instant messaging solution, as well as Communications Platform as a Service. The company also provides BlackBerry QNX, a software for automotive electronics; BlackBerry Jarvis, a cloud-based static binary code-scanning solution; Certicom that offers software components and end-to-end security solutions targeted at bandwidth and resource-constrained applications; Paratek, which offers adaptive radio frequency antenna tuning technology; BlackBerry Radar, an asset tracking and telematics product. In addition, it offers intellectual property and licensing; mobility licensing; other licensing programs; and develops legacy BlackBerry 10 platform, and delivers BlackBerry productivity applications to Android smartphone. Further, the company engages in the development and licensing of secure device software and the outsourcing to partners of design, manufacturing, sales, and customer support for BlackBerry-branded handsets; and provision of Android smartphones, smartphone accessories, and non-warranty repair services. Additionally, it is involved in the operations related to subscribers using mobile devices with its legacy BlackBerry 7 and prior operating systems. The company was formerly known as Research In Motion Limited and changed its name to BlackBerry Limited in July 2013. BlackBerry Limited was founded in 1984 and is headquartered in Waterloo, Canada.
About Guidewire Software
Guidewire Software, Inc. provides software products for property and casualty insurers. It offers Guidewire InsuranceNow, a cloud-based platform that offers policy, billing, and claims management functionality to insurers. The company's products include Guidewire InsuranceSuite comprising Guidewire PolicyCenter, an underwriting and policy administration application; Guidewire ClaimCenter, a lifecycle management application; Guidewire BillingCenter, manages billing, payment plans, agent commissions, and external payment systems; and Guidewire Underwriting Management, a cloud-based underwriting application. Its InsuranceSuite add-on applications consist of Guidewire Rating Management to manage the pricing of insurance products; Guidewire Reinsurance Management to use rules-based logic to execute reinsurance strategy through underwriting and claims processes; Guidewire Client Data Management to manage customer information; and Guidewire Product Content Management that provides software tools and standards-based line-of-business templates to introduce and modify insurance products. The company also provides data management and analytics products, such as Guidewire DataHub, a data store that unifies, standardizes, and stores data from insurer's systems and external sources; Guidewire InfoCenter that provides information for business intelligence, analysis, and enhanced decision making; Guidewire Live that aggregate data from internal and third-party sources, and analyze and visualize data; and Guidewire Predictive Analytics, a tool that allows insurers to make data-driven decisions. In addition, it offers Guidewire Digital Engagement Applications to provide digital experiences to customers, agents, vendors, and field personnel through their device of choice; and implementation and integration, maintenance support, and professional services, as well as Guidewire Production Services. The company was founded in 2001 and is headquartered in Foster City, California.
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