Kingsoft Cloud (NASDAQ:KC) vs. Guidewire Software (NYSE:GWRE) Financial Comparison

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

Earnings & Valuation

This table compares Kingsoft Cloud and Guidewire Software”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingsoft Cloud	$10.29 billion	0.26	-$133.88 million	($0.47)	-18.94
Guidewire Software	$1.20 billion	8.36	$69.80 million	$1.85	65.24

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

Risk & Volatility

Kingsoft Cloud has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500. Comparatively, Guidewire Software has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Kingsoft Cloud and Guidewire Software, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingsoft Cloud	1	1	4	0	2.50
Guidewire Software	0	3	10	0	2.77

Kingsoft Cloud currently has a consensus price target of $18.53, suggesting a potential upside of 108.24%. Guidewire Software has a consensus price target of $221.36, suggesting a potential upside of 83.42%. Given Kingsoft Cloud’s higher possible upside, equities research analysts clearly believe Kingsoft Cloud is more favorable than Guidewire Software.

Institutional and Insider Ownership

13.4% of Kingsoft Cloud shares are held by institutional investors. 14.2% of Kingsoft Cloud 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, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kingsoft Cloud	-9.38%	-11.67%	-3.59%
Guidewire Software	11.25%	12.62%	6.93%

Summary

Guidewire Software beats Kingsoft Cloud on 9 of the 14 factors compared between the two stocks.

About Kingsoft Cloud

Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company's products portfolio includes cloud products, including infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) middleware, and software as a service (SaaS) applications that primarily consist of cloud computing, network, database, big data, security, storage, and delivery solutions. It offers research and development services, as well as enterprise digital solutions and related services. The company also provides public cloud services to customers in various verticals, including video, e-commerce, intelligent mobility, artificial intelligence, and mobile internet; and enterprise cloud services to customers in financial services, public service, and healthcare businesses. Kingsoft Cloud Holdings Limited was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.

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.