Comprehensive Stock Comparison
Compare BlackLine, Inc. (BL) vs Guidewire Software, Inc. (GWRE) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | GWRE | 22.6% revenue growth vs BL's 10.7% |
| Value | BL | Lower P/E (14.7x vs 49.3x) |
| Quality / Margins | GWRE | 7.2% net margin vs BL's 3.5% |
| Stability / Safety | GWRE | Beta 0.88 vs BL's 0.97, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | BL | -27.0% vs GWRE's -27.8% |
| Efficiency (ROA) | GWRE | 3.5% ROA vs BL's 1.4%, ROIC 2.3% vs 1.4% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
BlackLine is a cloud-based software company that automates accounting and financial close processes for enterprises. It generates revenue primarily through subscription fees for its SaaS platform — which includes financial close management, account reconciliation, and accounts receivable automation modules — with over 90% of revenue coming from recurring subscriptions. The company's competitive moat lies in its deep domain expertise in complex accounting workflows and its established position as a market leader in financial close automation, creating high switching costs for enterprise customers.
Guidewire Software is a provider of core software systems for property and casualty insurers worldwide. It generates revenue primarily through software licenses, cloud subscriptions, and implementation services — with its InsuranceSuite platform being the main offering. The company's moat comes from deep industry-specific expertise, high switching costs for insurers, and a comprehensive product ecosystem that creates vendor lock-in.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
GWRE leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). BL leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
GWRE is the larger business by revenue, generating $1.3B annually — 1.8x BL's $700M. Profitability is closely matched — net margins range from 7.2% (GWRE) to 3.5% (BL). On growth, GWRE holds the edge at +26.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | BLBlackLine, Inc. | GWREGuidewire Softwar… |
|---|---|---|
| RevenueTrailing 12 months | $700M | $1.3B |
| EBITDAEarnings before interest/tax | $60M | $89M |
| Net IncomeAfter-tax profit | $25M | $92M |
| Free Cash FlowCash after capex | $153M | $286M |
| Gross MarginGross profit ÷ Revenue | +75.2% | +63.1% |
| Operating MarginEBIT ÷ Revenue | +3.6% | +5.1% |
| Net MarginNet income ÷ Revenue | +3.5% | +7.2% |
| FCF MarginFCF ÷ Revenue | +21.9% | +22.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +8.1% | +26.5% |
| EPS Growth (YoY)Latest quarter vs prior year | -89.9% | +2.3% |
Valuation Metrics
At 24.3x trailing earnings, BL trades at a 86% valuation discount to GWRE's 179.4x P/E. On an enterprise value basis, BL's 32.6x EV/EBITDA is more attractive than GWRE's 189.7x.
| Metric | BLBlackLine, Inc. | GWREGuidewire Softwar… |
|---|---|---|
| Market CapShares × price | $2.2B | $12.3B |
| Enterprise ValueMkt cap + debt − cash | $2.2B | $12.3B |
| Trailing P/EPrice ÷ TTM EPS | 24.31x | 179.41x |
| Forward P/EPrice ÷ next-FY EPS est. | 14.68x | 49.27x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 32.59x | 189.75x |
| Price / SalesMarket cap ÷ Revenue | 3.39x | 10.22x |
| Price / BookPrice ÷ Book value/share | 5.36x | 8.57x |
| Price / FCFMarket cap ÷ FCF | 11.73x | 41.62x |
Profitability & Efficiency
BL delivers a 6.6% return on equity — every $100 of shareholder capital generates $7 in annual profit, vs $6 for GWRE. GWRE carries lower financial leverage with a 0.49x debt-to-equity ratio, signaling a more conservative balance sheet compared to BL's 1.90x. On the Piotroski fundamental quality scale (0–9), BL scores 8/9 vs GWRE's 7/9, reflecting strong financial health.
| Metric | BLBlackLine, Inc. | GWREGuidewire Softwar… |
|---|---|---|
| ROE (TTM)Return on equity | +6.6% | +6.0% |
| ROA (TTM)Return on assets | +1.4% | +3.5% |
| ROICReturn on invested capital | +1.4% | +2.3% |
| ROCEReturn on capital employed | +1.3% | +2.3% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 7 |
| Debt / EquityFinancial leverage | 1.90x | 0.49x |
| Net DebtTotal debt minus cash | $31M | $17M |
| Cash & Equiv.Liquid assets | $886M | $699M |
| Total DebtShort + long-term debt | $917M | $716M |
| Interest CoverageEBIT ÷ Interest expense | 8.79x | 5.92x |
Total Returns (with DRIP)
A $10,000 investment in GWRE five years ago would be worth $12,565 today (with dividends reinvested), compared to $2,763 for BL. Over the past 12 months, BL leads with a -27.0% total return vs GWRE's -27.8%. The 3-year compound annual growth rate (CAGR) favors GWRE at 27.4% vs BL's -19.8% — a key indicator of consistent wealth creation.
| Metric | BLBlackLine, Inc. | GWREGuidewire Softwar… |
|---|---|---|
| YTD ReturnYear-to-date | -34.5% | -22.5% |
| 1-Year ReturnPast 12 months | -27.0% | -27.8% |
| 3-Year ReturnCumulative with dividends | -48.4% | +107.0% |
| 5-Year ReturnCumulative with dividends | -72.4% | +25.7% |
| 10-Year ReturnCumulative with dividends | +48.7% | +195.2% |
| CAGR (3Y)Annualised 3-year return | -19.8% | +27.4% |
Risk & Volatility
GWRE is the less volatile stock with a 0.88 beta — it tends to amplify market swings less than BL's 0.97 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. BL currently trades 59.2% from its 52-week high vs GWRE's 53.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | BLBlackLine, Inc. | GWREGuidewire Softwar… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.97x | 0.88x |
| 52-Week HighHighest price in past year | $59.57 | $272.60 |
| 52-Week LowLowest price in past year | $31.75 | $120.75 |
| % of 52W HighCurrent price vs 52-week peak | +59.2% | +53.3% |
| RSI (14)Momentum oscillator 0–100 | 29.6 | 52.5 |
| Avg Volume (50D)Average daily shares traded | 903K | 1.3M |
Analyst Outlook
Wall Street rates BL as "Hold" and GWRE as "Buy". Consensus price targets imply 74.4% upside for GWRE (target: $254) vs 51.1% for BL (target: $53).
| Metric | BLBlackLine, Inc. | GWREGuidewire Softwar… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $53.25 | $253.50 |
| # AnalystsCovering analysts | 25 | 26 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.8% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| BlackLine, Inc. (BL) | 100 | 74.61 | -25.4% |
| Guidewire Software,… (GWRE) | 100 | 124.1 | +24.1% |
Guidewire Software,… (GWRE) returned +26% over 5 years vs BlackLine, Inc. (BL)'s -72%. A $10,000 investment in GWRE 5 years ago would be worth $12,565 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| BlackLine, Inc. (BL) | $123M | $653M | +430.6% |
| Guidewire Software,… (GWRE) | $424M | $1.2B | +183.3% |
Guidewire Software, Inc.'s revenue grew from $424M (2016) to $1.2B (2025) — a 12.3% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| BlackLine, Inc. (BL) | -31.8% | 24.7% | +177.6% |
| Guidewire Software,… (GWRE) | 3.5% | 5.8% | +64.5% |
Guidewire Software, Inc.'s net margin went from 4% (2016) to 6% (2025).
Chart 4P/E Ratio History — 3 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Guidewire Software,… (GWRE) | 309.4 | 248.2 | -19.8% |
Guidewire Software, Inc. has traded in a 248x–439x P/E range over 3 years; current trailing P/E is ~179x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| BlackLine, Inc. (BL) | -0.92 | 1.45 | +257.6% |
| Guidewire Software,… (GWRE) | 0.2 | 0.81 | +305.0% |
Guidewire Software, Inc.'s EPS grew from $0.20 (2016) to $0.81 (2025) — a 17% CAGR.
Chart 6Free Cash Flow — 5 Years
BlackLine, Inc. generated $189M FCF in 2024 (+232% vs 2021). Guidewire Software, Inc. generated $295M FCF in 2025 (+257% vs 2021).
BL vs GWRE: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is BL or GWRE a better buy right now?
BlackLine, Inc. (BL) offers the better valuation at 24.3x trailing P/E (14.7x forward), making it the more compelling value choice. Analysts rate Guidewire Software, Inc. (GWRE) a "Buy" — based on 26 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — BL or GWRE?
On trailing P/E, BlackLine, Inc. (BL) is the cheapest at 24.3x versus Guidewire Software, Inc. at 179.4x. On forward P/E, BlackLine, Inc. is actually cheaper at 14.7x.
03Which is the better long-term investment — BL or GWRE?
Over the past 5 years, Guidewire Software, Inc. (GWRE) delivered a total return of +25.7%, compared to -72.4% for BlackLine, Inc. (BL). A $10,000 investment in GWRE five years ago would be worth approximately $13K today (assuming dividends reinvested). Over 10 years, the gap is even starker: GWRE returned +195.2% versus BL's +48.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — BL or GWRE?
By beta (market sensitivity over 5 years), Guidewire Software, Inc. (GWRE) is the lower-risk stock at 0.88β versus BlackLine, Inc.'s 0.97β — meaning BL is approximately 10% more volatile than GWRE relative to the S&P 500. On balance sheet safety, Guidewire Software, Inc. (GWRE) carries a lower debt/equity ratio of 49% versus 190% for BlackLine, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — BL or GWRE?
BlackLine, Inc. (BL) is the more profitable company, earning 24.7% net margin versus 5.8% for Guidewire Software, Inc. — meaning it keeps 24.7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GWRE leads at 3.4% versus 2.8% for BL. At the gross margin level — before operating expenses — BL leads at 75.2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is BL or GWRE more undervalued right now?
On forward earnings alone, BlackLine, Inc. (BL) trades at 14.7x forward P/E versus 49.3x for Guidewire Software, Inc. — 34.6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GWRE: 74.4% to $253.50.
07Which pays a better dividend — BL or GWRE?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is BL or GWRE better for a retirement portfolio?
For long-horizon retirement investors, Guidewire Software, Inc. (GWRE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.88), +195.2% 10Y return). Both have compounded well over 10 years (GWRE: +195.2%, BL: +48.7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between BL and GWRE?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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