Critical Contrast: Guidewire Software (GWRE) & Talend (TLND)

Guidewire Software (NYSE: GWRE) and Talend (NASDAQ:TLND) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Earnings & Valuation

This table compares Guidewire Software and Talend’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Guidewire Software $514.28 million 11.16 $47.34 million $0.28 273.36
Talend $126.53 million 9.09 -$24.55 million ($0.99) -41.54

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

Volatility and Risk

Guidewire Software has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Talend has a beta of 3.68, suggesting that its share price is 268% more volatile than the S&P 500.

Institutional and Insider Ownership

42.8% of Talend shares are owned by institutional investors. 1.0% of Guidewire Software shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Guidewire Software and Talend, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guidewire Software 0 3 6 1 2.80
Talend 0 0 6 0 3.00

Guidewire Software currently has a consensus target price of $79.57, indicating a potential upside of 3.96%. Talend has a consensus target price of $42.00, indicating a potential upside of 2.14%. Given Guidewire Software’s higher probable upside, research analysts clearly believe Guidewire Software is more favorable than Talend.

Profitability

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

Net Margins Return on Equity Return on Assets
Guidewire Software 4.13% 3.59% 3.04%
Talend -20.62% -159.94% -17.00%

Summary

Guidewire Software beats Talend on 10 of the 13 factors compared between the two stocks.

About Guidewire Software

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.

About Talend

Talend SA is a provider of open source integration solutions for data-oriented companies and integration platform under Apache Spark. The Company’s platform enables users to connect data and applications on-premise or in the cloud, in real time or in batch, Big Data or reference data. Its commercial products are Data Fabric, Big Data Integration, Real-Time Big Data, Data Preparation, Data Integration, Cloud Integration, Data Quality, Application Integration, Master Data Management and metadata Manager. Its free products are Data Preparation and Talend Open Studio, including Open Studio for Big Data, Open Studio for Data Integration, Open Studio for Data Quality, Open Studio for ESB and Open Studio for MDM. Its product, Talend Data Fabric, is a data platform. Talend Data Fabric combines big data, data integration, cloud, reference data management, data preparation and application integration in a single platform with a common development environment and management.

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