Guidewire Software (NYSE:GWRE) and Mimecast (NASDAQ:MIME) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.
Risk and Volatility
Guidewire Software has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Mimecast has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.
67.7% of Mimecast shares are held by institutional investors. 0.7% of Guidewire Software shares are held by insiders. Comparatively, 29.0% of Mimecast shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Guidewire Software and Mimecast’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Guidewire Software||$661.07 million||13.02||-$19.66 million||$0.09||1,174.89|
|Mimecast||$340.38 million||8.17||-$7.00 million||($0.07)||-657.71|
Mimecast has lower revenue, but higher earnings than Guidewire Software. Mimecast is trading at a lower price-to-earnings ratio than Guidewire Software, indicating that it is currently the more affordable of the two stocks.
This table compares Guidewire Software and Mimecast’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 Guidewire Software and Mimecast, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Guidewire Software presently has a consensus price target of $108.78, suggesting a potential upside of 2.87%. Mimecast has a consensus price target of $53.40, suggesting a potential upside of 15.99%. Given Mimecast’s stronger consensus rating and higher possible upside, analysts plainly believe Mimecast is more favorable than Guidewire Software.
Guidewire Software beats Mimecast on 8 of the 14 factors compared between the two stocks.
About Guidewire Software
Guidewire Software, Inc. provides software products for property and casualty insurers worldwide. The company offers Guidewire InsuranceSuite comprising Guidewire PolicyCenter, BillingCenter, and ClaimCenter applications. It also provides Guidewire InsuranceNow, a cloud-based platform, which offers policy, billing, and claims management functionality to insurers that prefer to subscribe to a cloud-based solution. In addition, the company offers Guidewire Underwriting Management, a cloud-based integrated business application; 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; and Guidewire Client Data Management to enable customer information management. Further, it provides Guidewire Product Content Management that offers software tools and standards-based line-of-business templates to introduce and modify products; Guidewire AppReader, a submission intake management solution; and Guidewire London Market Messaging that provides a message-processing and action framework. Additionally, the company offers data management and analytics products, such as Guidewire DataHub, an operational data store; Guidewire InfoCenter, a business intelligence warehouse; Guidewire Live Analytics, a cloud analytics platform; Guidewire Predictive Analytics, a cloud-based tool; and Guidewire Cyence Risk Analytics, a cloud-native economic cyber risk modeling solution, as well as Digital Engagement Applications, which enable insurers to provide digital experiences to customers, agents, vendors, and field personnel through their device of choice. It also provides 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.
Mimecast Limited, a email and data security company, provides cloud security and risk management services for corporate information and email. The company offers Mimecast Email Security services, including targeted threat protection services, such as URL Protect that addresses the threat from emails containing malicious links; Attachment Protect that reduces threat from weaponized or malware-laden attachments used in spear-phishing and other attacks; Impersonation Protect that gives protection from malware-less social engineering attacks; and Internal Email Protect, which allows customers to monitor, detect, and remediate security threats that originate from within their internal email systems. Its Mimecast Email Security services also comprise Secure Messaging for sharing sensitive information with external contacts through email; Large File Send that enables employees to create security and compliance risks when they turn to file sharing services; and Data Leak Prevention, which prevents the inadvertent or malicious loss of sensitive corporate data with advanced data leak prevention and content controls. In addition, the company offers Mimecast Mailbox Continuity, which protects email and data against the threat of downtime as a result of system failure, natural disasters, planned maintenance, system upgrades, and migrations; and Mimecast Enterprise Information Archiving that offers cloud archive consolidation of inbound, outbound and internal email, files, and instant messaging in an archive, as well as incorporates legacy data from additional archives into the same searchable store. Further, it provides Service Bundles, a unified service managed from a single administration console; and Mimecast Mobile and Desktop Apps for mobile, PC, and Mac users to get self-service access to security features. The company sells its services through direct sales and channel partners. Mimecast Limited was founded in 2003 and is headquartered in London, the United Kingdom.
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