Constellation Software (OTCMKTS:CNSWF) vs. Guidewire Software (NYSE:GWRE) Head-To-Head Contrast

Constellation Software (OTCMKTS:CNSWF) and Guidewire Software (NYSE:GWRE) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Constellation Software	6.12%	49.01%	13.10%
Guidewire Software	14.11%	13.44%	7.48%

Earnings & Valuation

This table compares Constellation Software and Guidewire Software”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Constellation Software	$11.62 billion	3.64	$512.00 million	$35.06	56.88
Guidewire Software	$1.20 billion	9.84	$69.80 million	$2.20	63.56

Constellation Software has higher revenue and earnings than Guidewire Software. Constellation Software is trading at a lower price-to-earnings ratio than Guidewire Software, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Constellation Software and Guidewire Software, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Constellation Software	0	2	5	0	2.71
Guidewire Software	1	3	11	1	2.75

Guidewire Software has a consensus price target of $244.46, indicating a potential upside of 74.83%. Given Guidewire Software’s stronger consensus rating and higher possible upside, analysts plainly believe Guidewire Software is more favorable than Constellation Software.

Volatility & Risk

Constellation Software has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Guidewire Software has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Summary

Guidewire Software beats Constellation Software on 7 of the 13 factors compared between the two stocks.

About Constellation Software

Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses in Canada, the United States, Europe, and internationally. It provides mission critical software solutions for public and private sector markets. The company is also involved in the software licensing; and sale of third-party hardware. In addition, it offers professional, and maintenance and other recurring services. Constellation Software Inc. was incorporated in 1995 and is headquartered in Toronto, Canada.

About Guidewire Software

Guidewire Software, Inc. provides a platform for property and casualty (P&C) insurers worldwide. The company offers Guidewire InsuranceSuite Cloud, such as PolicyCenter Cloud, BillingCenter Cloud, and ClaimCenter Cloud applications. It also provides Guidewire InsuranceNow, a cloud-based platform that offers policy, billing, and claims management functionality to insurers; and Guidewire InsuranceSuite for Self-Managed. In addition, the company offers Guidewire Rating Management to manage the pricing of insurance products; and Guidewire Reinsurance Management to use rules-based logic to execute reinsurance strategy through underwriting and claims processes. Further, it provides Guidewire Underwriting Management, a cloud-based integrated business application; Guidewire AppReader, a submission intake management solution; Guidewire ClaimCenter Package for the London market supports the claims workflow used by London Market insurers and brokers; Guidewire Digital Engagement Applications, which enable insurers to provide digital experiences to customers, agents, vendors, and field personnel through their device of choice; and Guidewire for Salesforce to provide customer information regarding policies and claims. Additionally, the company offers Guidewire Predict, a P&C-specific machine-learning platform; Guidewire HazardHub that allows insurers to understand, assess, price, and manage property risk; Guidewire Canvas, Guidewire Compare, and Guidewire Explore cloud-native applications; and Guidewire Cyence, a cyber-risk economic modeling product. The company was incorporated in 2001 and is headquartered in San Mateo, California.