Guidewire Software (NYSE: GWRE) and Appian (NASDAQ:APPN) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Guidewire Software 3.82% 3.29% 2.78%
Appian N/A N/A N/A

Institutional and Insider Ownership

11.6% of Appian shares are held by institutional investors. 0.7% of Guidewire Software shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Guidewire Software and Appian’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Guidewire Software $514.28 million 10.88 $21.22 million $0.25 296.92
Appian N/A N/A N/A N/A N/A

Guidewire Software has higher revenue and earnings than Appian.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guidewire Software 0 2 6 1 2.89
Appian 0 6 2 0 2.25

Guidewire Software presently has a consensus target price of $79.57, suggesting a potential upside of 7.20%. Appian has a consensus target price of $21.50, suggesting a potential upside of 3.07%. Given Guidewire Software’s stronger consensus rating and higher probable upside, research analysts plainly believe Guidewire Software is more favorable than Appian.

Summary

Guidewire Software beats Appian on 9 of the 10 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 Appian

Appian Corporation provides a low-code software development platform as a service that enables organizations to develop applications. Through Company’s platform, organizations can design, build and implement, enterprise-grade custom applications. Decision makers can reimagine their products, services, processes and customer interactions. The Company’s platform automates the creation of forms, data flows, records, reports and other software elements. The Company’s SAIL technology allows developers to create an application once and deploy it everywhere. The Company’s products include business process management (BPM) software, case management, mobile application development and platform as a service. The Company provides its services to a range of industries including energy, insurance, health payers and providers, manufacturing, public sector, retail and transportation.

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