Aurora Innovation (NASDAQ:AUR – Get Free Report) and Guidewire Software (NYSE:GWRE – Get Free Report) are both large-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Earnings & Valuation
This table compares Aurora Innovation and Guidewire Software”s gross 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 |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Aurora Innovation and Guidewire Software, as provided by MarketBeat.
| 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 probable upside, research analysts clearly believe Aurora Innovation is more favorable than Guidewire Software.
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% |
Institutional and Insider Ownership
44.7% of Aurora Innovation shares are owned by institutional investors. 8.5% of Aurora Innovation shares are owned by insiders. Comparatively, 0.5% of Guidewire Software shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Volatility and 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.
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.
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