Guidewire Software (NYSE:GWRE) versus Aurora Innovation (NASDAQ:AUR) Head to Head Survey

Aurora Innovation (NASDAQ:AUR) and Guidewire Software (NYSE:GWRE) are both large-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Valuation & Earnings

This table compares Aurora Innovation and Guidewire Software”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aurora Innovation	$3.00 million	3,373.67	-$816.00 million	($0.47)	-10.74
Guidewire Software	$1.48 billion	9.31	$139.28 million	$1.63	101.19

Guidewire Software has higher revenue and earnings than Aurora Innovation. Aurora Innovation 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 Aurora Innovation and Guidewire Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aurora Innovation	-18,000.00%	-43.94%	-39.85%
Guidewire Software	9.44%	12.66%	6.73%

Volatility & Risk

Aurora Innovation has a beta of 2.69, suggesting that its share price is 169% more volatile than the S&P 500. Comparatively, Guidewire Software has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Aurora Innovation and Guidewire Software, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aurora Innovation	3	2	8	0	2.38
Guidewire Software	0	4	12	0	2.75

Aurora Innovation currently has a consensus target price of $13.22, indicating a potential upside of 161.83%. Guidewire Software has a consensus target price of $216.23, indicating a potential upside of 31.09%. Given Aurora Innovation’s higher possible upside, analysts plainly believe Aurora Innovation is more favorable than Guidewire Software.

Insider & Institutional Ownership

44.7% of Aurora Innovation shares are held by institutional investors. 8.5% of Aurora Innovation shares are held by company insiders. Comparatively, 0.5% of Guidewire Software shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Guidewire Software beats Aurora Innovation on 9 of the 14 factors compared between the two stocks.

About Aurora Innovation

Aurora Innovation, Inc. operates as a self-driving technology company in the United States. It focuses on developing Aurora Driver, a platform that brings a suite of self-driving hardware, software, and data services together to adapt and interoperate vehicles. The company was founded in 2017 and is headquartered in Pittsburgh, Pennsylvania.

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.