Critical Comparison: Deltek (PROJ) versus Guidewire Software (GWRE)

Deltek (NASDAQ: PROJ) and Guidewire Software (NYSE:GWRE) are both enterprise software companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Deltek 0 0 0 0 N/A
Guidewire Software 0 3 6 1 2.80

Guidewire Software has a consensus target price of $79.57, indicating a potential downside of 0.92%. Given Guidewire Software’s higher possible upside, analysts plainly believe Guidewire Software is more favorable than Deltek.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Deltek N/A N/A N/A $0.15 86.60
Guidewire Software $514.28 million 11.77 $21.22 million $0.28 286.82

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

Profitability

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

Net Margins Return on Equity Return on Assets
Deltek N/A N/A N/A
Guidewire Software 4.13% 3.59% 3.04%

Risk & Volatility

Deltek has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Guidewire Software has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Summary

Guidewire Software beats Deltek on 9 of the 9 factors compared between the two stocks.

About Deltek

Deltek Inc is a United States-based provider of enterprise software and information solutions for professional services firms and government contractors. Its products include Deltek Costpoint, Deltek Project Portfolio Management (PPM), Deltek Project Manufacturing, Deltek First: Cloud Solutions for small to mid size firms, Deltek GCS Premier, GovWin, Deltek Vision, Axium Ajera, Axium Project Trek, Deltek Maconomy Deltek People Planner, Deltek Traffic LIVE and Kona Business. The Company’s Deltek Costpoint includes AppGRC for Costpoint, Costpoint HR Solution Suite, Deltek Costpoint Analytics, Deltek Time & Expense with Employee Self Service, Deltek Costpoint Budgeting & Planning, Touch Time for GovCon and Deltek Mobile Time. GovWin by Deltek includes Federal Market Intelligence, State & Local Market Intelligence, GovWin Capture Management and Deltek Capture Analytics. Its Deltek GCS Premier includes GCS Premier Analytics and GCS Premier Budgeting & Planning.

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.

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