Guidewire Software Inc versus Mobileye N.V. Head to Head Compare

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This is a head to head compare of Guidewire Software Inc (NYSE:GWRE) and Mobileye N.V. (NYSE:MBLY) . We will compare the two companies on revenue growth, earnings, revenue per employee, operating margins, free cash flow and valuation. The head to head compare assigns 100 points in total.

Before we dive into the analysis, we will look at the stock returns for each company over the last three months, six months and the last year. The stock returns do not impact the head to head compare scores which are focused on the fundamentals of each company, but ultimately stock returns are are still a critical piece to a full analysis and compare.

Stock Returns
Symbol 3-Months 6-Months One-Year Fundamentals
GWRE +13.0% +3.6% +4.5%
MBLY +44.9% +62.7% +55.2%

Mobileye N.V. has a substantially higher fundamental rating then Guidewire Software Inc which has an impact on the head-to-head comparison. The CML Star Rating is an objective, quantifiable measure of a company's operating and financial condition. The rating is computed by measuring numerous elements of the company's current financial data and their associated changes over time.

Now, let's dive into the two companies to compare them.

➤ Income Statement
First we turn to the income statement and compare revenue, earnings and revenue per employee for both companies. We note that simple revenue comparisons do not impact the rating.

Guidewire Software Inc has larger revenue in the last year than Mobileye N.V.. Raw revenue comps do not affect the head to head rating.

Both GWRE and MBLY show positive earnings over the last year with the edge to MBLY.

Net Income

MBLY generates substantially larger revenue per employee ($444,000) than GWRE ($269,000).

Revenue per Employee
($ Millions)

➤ Margins
Next we create some derived metrics to compare the the amount of revenue earned per dollar of expense and the amount of free cash flow earned per dollar of revenue. Margins are one of the fairest ways to compare companies since they remove some of the bias of large versus small numbers.

Mobileye N.V. generates $1.47 in revenue for every $1 of expense, while Guidewire Software Inc generates an operating loss with just $0.84 in revenue per $1 of expense.

Revenue per Dollar of Expense

MBLY generates $0.30 in levered free cash flow for every $1 of revenue, very similar to GWRE's $0.25.

Free Cash Flow
per Dollar of Revenue

➤ Growth
Finally we compare the financial metrics related to growth: revenue growth rates and price to sales.

Both companies are growing revenue. Mobileye N.V. is growing revenue massively faster than Guidewire Software Inc.

Revenue Growth

For every $1 in revenue, the stock market prices in $9.46 in market cap for GWRE and $31.07 in market cap for MBLY.

Price to Sales

Mobileye N.V. (NYSE:MBLY)
Guidewire Software Inc (NYSE:GWRE) : 93 to 7