Guidewire Software (NASDAQ: QUMU) and Qumu (NASDAQ:QUMU) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Valuation and Earnings

This table compares Guidewire Software and Qumu’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Guidewire Software $661.07 million 12.72 -$19.67 million $0.09 1,164.44
Qumu $28.17 million 0.85 -$11.72 million ($1.07) -2.34

Qumu has lower revenue, but higher earnings than Guidewire Software. Qumu 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 Ratings

This is a summary of recent recommendations for Guidewire Software and Qumu, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guidewire Software 0 2 7 0 2.78
Qumu 0 1 0 0 2.00

Guidewire Software presently has a consensus target price of $103.13, suggesting a potential downside of 1.60%. Given Guidewire Software’s stronger consensus rating and higher probable upside, equities analysts plainly believe Guidewire Software is more favorable than Qumu.

Profitability

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

Net Margins Return on Equity Return on Assets
Guidewire Software -2.97% 1.95% 1.55%
Qumu -42.60% -123.32% -30.02%

Insider and Institutional Ownership

18.2% of Qumu shares are owned by institutional investors. 0.7% of Guidewire Software shares are owned by insiders. Comparatively, 15.0% of Qumu shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Guidewire Software has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Qumu has a beta of -0.8, meaning that its share price is 180% less volatile than the S&P 500.

Summary

Guidewire Software beats Qumu on 11 of the 14 factors compared between the two stocks.

Guidewire Software Company Profile

Guidewire Software, Inc. provides software products for property and casualty insurers. It offers Guidewire InsuranceNow, a cloud-based platform that offers policy, billing, and claims management functionality to insurers. The company's products include Guidewire InsuranceSuite comprising Guidewire PolicyCenter, an underwriting and policy administration application; Guidewire ClaimCenter, a lifecycle management application; Guidewire BillingCenter, manages billing, payment plans, agent commissions, and external payment systems; and Guidewire Underwriting Management, a cloud-based underwriting application. Its InsuranceSuite add-on applications consist of 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; Guidewire Client Data Management to manage customer information; and Guidewire Product Content Management that provides software tools and standards-based line-of-business templates to introduce and modify insurance products. The company also provides data management and analytics products, such as Guidewire DataHub, a data store that unifies, standardizes, and stores data from insurer's systems and external sources; Guidewire InfoCenter that provides information for business intelligence, analysis, and enhanced decision making; Guidewire Live that aggregate data from internal and third-party sources, and analyze and visualize data; and Guidewire Predictive Analytics, a tool that allows insurers to make data-driven decisions. In addition, it offers Guidewire Digital Engagement Applications to provide digital experiences to customers, agents, vendors, and field personnel through their device of choice; and 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.

Qumu Company Profile

Qumu Corporation provides tools to create, manage, secure, distribute, and deliver live and on-demand video content for the enterprises. It offers Qumu Qx Enterprise Video Platform, an end-to-end video creation, management, and delivery solution through the sale of software licenses and hardware, software on server appliance, software-enabled devices, and a cloud-hosted software-as-a-service platform. The company also provides maintenance and support, professional, and other services. The company markets its products to customers in the banking, finance and insurance, manufacturing, services and consulting, telecom and technology, and biotech and health care markets through direct sales and channel partners in North America, Europe, and Asia. The company was formerly known as Rimage Corporation and changed its name to Qumu Corporation in September 2013. Qumu Corporation was founded in 1978 and is headquartered in Minneapolis, Minnesota.

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