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GDDY vs GWRE

GDDY
GoDaddy Inc.
NEUTRAL
Price
$86.04
Market Cap
$11.47B
Sector
Technology
AI Confidence
85%
GWRE
Guidewire Software, Inc.
NEUTRAL
Price
$136.62
Market Cap
$11.62B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
GDDY
13.83
GWRE
61.82
Forward P/E
GDDY
7.32
GWRE
32.26
P/B Ratio
GDDY
53.91
GWRE
7.66
P/S Ratio
GDDY
2.32
GWRE
8.66
EV/EBITDA
GDDY
11.32
GWRE
109.6

Profitability

Gross Margin
GDDY
63.61%
GWRE
63.76%
Operating Margin
GDDY
25.14%
GWRE
10.71%
Profit Margin
GDDY
17.67%
GWRE
14.11%
ROE
GDDY
192.9%
GWRE
13.63%
ROA
GDDY
8.75%
GWRE
2.17%

Growth

Revenue Growth
GDDY
6.8%
GWRE
24.0%
Earnings Growth
GDDY
31.7%
GWRE
--

Financial Health

Debt/Equity
GDDY
17.96
GWRE
0.47
Current Ratio
GDDY
0.61
GWRE
2.93
Quick Ratio
GDDY
0.41
GWRE
2.74

Dividends

Dividend Yield
GDDY
--
GWRE
--
Payout Ratio
GDDY
0.0%
GWRE
0.0%

AI Verdict

GDDY NEUTRAL

GDDY presents a stark dichotomy between attractive valuation and alarming financial leverage. The Piotroski F-Score of 4/9 indicates a stable but mediocre health profile, while the absence of an Altman Z-Score and a critical Current Ratio of 0.61 suggest significant liquidity risks. While the Forward P/E (7.32) and PEG (0.68) indicate deep value relative to earnings growth, this is heavily offset by a Debt/Equity ratio of 17.96 and a bearish technical trend. The massive divergence between the Graham Number ($14.95) and Intrinsic Value ($183.49) highlights a company with minimal tangible book value but strong growth-based cash flow potential.

Strengths
Extremely attractive Forward P/E of 7.32
Strong PEG ratio (0.68) indicating undervaluation relative to growth
Robust earnings growth (YoY 31.70%)
Risks
Extreme leverage with a Debt/Equity ratio of 17.96
Poor short-term liquidity (Current Ratio 0.61, Quick Ratio 0.41)
Aggressive insider selling, including the CEO and CFO
GWRE NEUTRAL

GWRE demonstrates strong fundamental health with a Piotroski F-Score of 7/9 and robust liquidity (Current Ratio 2.93). While the stock trades at a massive premium to its Graham Number ($29.79) and Intrinsic Value ($15.47), its PEG ratio of 0.85 suggests that its aggressive growth trajectory may justify a higher valuation. However, the combination of a severe short-term price collapse (-46% in 6 months) and consistent bearish insider selling by the CEO creates significant near-term risk. The stock is currently a battle between strong operational execution and poor market sentiment/valuation disconnect.

Strengths
Strong Piotroski F-Score (7/9) indicating high financial health
Exceptional YoY EPS growth of 129.4%
Attractive PEG ratio (0.85) indicating growth is undervalued relative to price
Risks
Extreme valuation premium over defensive fair value (Graham Number $29.79)
Bearish insider activity with 20 sell transactions, primarily by the CEO
Severe negative technical trend (0/100) and 6-month price decline of 46%

Compare Another Pair

GDDY vs GWRE: Head-to-Head Comparison

This page compares GoDaddy Inc. (GDDY) and Guidewire Software, Inc. (GWRE) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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