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GWRE vs HUBS

GWRE
Guidewire Software, Inc.
NEUTRAL
Price
$136.62
Market Cap
$11.62B
Sector
Technology
AI Confidence
85%
HUBS
HubSpot, Inc.
NEUTRAL
Price
$225.07
Market Cap
$11.87B
Sector
Technology
AI Confidence
80%

Valuation

P/E Ratio
GWRE
61.82
HUBS
261.71
Forward P/E
GWRE
32.26
HUBS
14.74
P/B Ratio
GWRE
7.66
HUBS
5.72
P/S Ratio
GWRE
8.66
HUBS
3.79
EV/EBITDA
GWRE
109.6
HUBS
338.49

Profitability

Gross Margin
GWRE
63.76%
HUBS
83.76%
Operating Margin
GWRE
10.71%
HUBS
5.69%
Profit Margin
GWRE
14.11%
HUBS
1.47%
ROE
GWRE
13.63%
HUBS
2.31%
ROA
GWRE
2.17%
HUBS
0.2%

Growth

Revenue Growth
GWRE
24.0%
HUBS
20.4%
Earnings Growth
GWRE
--
HUBS
968.1%

Financial Health

Debt/Equity
GWRE
0.47
HUBS
0.13
Current Ratio
GWRE
2.93
HUBS
1.67
Quick Ratio
GWRE
2.74
HUBS
1.45

Dividends

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

AI Verdict

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%
HUBS NEUTRAL

HubSpot exhibits strong fundamental health with a Piotroski F-Score of 8/9 and very low leverage (Debt/Equity 0.13), yet it faces a severe technical crisis with a 63.2% one-year price decline. There is a massive disconnect between defensive valuation metrics (Graham Number $27.58) and the current market price ($225.07), indicating the stock is priced entirely on growth expectations. While the Forward P/E (14.74) and PEG ratio (0.37) suggest significant undervaluation relative to future earnings, bearish insider sentiment and a 0/100 technical trend create a high-risk environment for entry.

Strengths
Strong financial health evidenced by a Piotroski F-Score of 8/9
Exceptional gross margins of 83.76%
Very low debt-to-equity ratio (0.13) indicating minimal insolvency risk
Risks
Severe negative price momentum (1Y Change: -63.2%)
Bearish insider activity with $15.53M in net sales over 6 months
Extreme premium over Graham Number and Intrinsic Value formulas

Compare Another Pair

GWRE vs HUBS: Head-to-Head Comparison

This page compares Guidewire Software, Inc. (GWRE) and HubSpot, Inc. (HUBS) 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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