IREN (NASDAQ:IREN – Get Free Report) and Guidewire Software (NYSE:GWRE – Get Free Report) are both large-cap technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.
Insider and Institutional Ownership
41.1% of IREN shares are held by institutional investors. 5.0% of IREN shares are held by insiders. Comparatively, 0.5% of Guidewire Software shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares IREN and Guidewire Software”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| IREN | $707.01 million | 24.60 | -$702.62 million | ($2.34) | -18.86 |
| Guidewire Software | $1.48 billion | 8.22 | $139.28 million | $1.63 | 89.39 |
Guidewire Software has higher revenue and earnings than IREN. IREN 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 breakdown of current recommendations for IREN and Guidewire Software, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IREN | 1 | 4 | 16 | 1 | 2.77 |
| Guidewire Software | 0 | 4 | 12 | 0 | 2.75 |
IREN currently has a consensus price target of $81.47, suggesting a potential upside of 84.61%. Guidewire Software has a consensus price target of $216.23, suggesting a potential upside of 48.40%. Given IREN’s stronger consensus rating and higher possible upside, research analysts clearly believe IREN is more favorable than Guidewire Software.
Profitability
This table compares IREN and Guidewire Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| IREN | -99.38% | -15.46% | -5.51% |
| Guidewire Software | 9.44% | 12.66% | 6.73% |
Risk and Volatility
IREN has a beta of 4.28, indicating that its share price is 328% more volatile than the S&P 500. Comparatively, Guidewire Software has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.
Summary
IREN beats Guidewire Software on 8 of the 15 factors compared between the two stocks.
About IREN
IREN Limited, formerly known as Iris Energy Limited, owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.
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.
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