HQY
HealthEquity, Inc.
Medical - Healthcare Information Services
Market Cap$7.14B
5Y Perf.+35.5%
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Stock Comparison
HQY vs GWRE
Revenue, margins, valuation, and 5-year total return — side by side.
GWRE
Guidewire Software, Inc.
Software - Application
Market Cap$11.80B
5Y Perf.+36.1%
HQY vs GWRE — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | HQY | GWRE |
|---|---|---|
| Industry | Medical - Healthcare Information Services | Software - Application |
| Market Cap | $7.14B | $11.80B |
| Revenue (TTM) | $1.31B | $1.34B |
| Net Income (TTM) | $215M | $189M |
| Gross Margin | 69.5% | 63.8% |
| Operating Margin | 24.6% | 6.8% |
| Forward P/E | 21.2x | 39.7x |
| Total Debt | $44M | $716M |
| Cash & Equiv. | $319M | $699M |
HQY vs GWRE — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
HQY
GWRE
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| HealthEquity, Inc. (HQY) | 100 | 135.5 | +35.5% |
| Guidewire Software,… (GWRE) | 100 | 136.1 | +36.1% |
Price return only. Dividends and distributions are not included.
Quick Verdict: HQY vs GWRE
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: HQY and GWRE are tied at the top with 3 categories each — the right choice depends on your priorities. Guidewire Software, Inc. is the stronger pick specifically for growth and revenue expansion and capital preservation and lower volatility. This set spans 2 sectors — these stocks serve different portfolio roles, not just different price points.
HQY
HealthEquity, Inc.
The Long-Run Compounder
HQY has the current edge in this matchup, primarily because of its strength in long-term compounding and sleep-well-at-night.
- 228.2% 10Y total return vs GWRE's 151.9%
- Lower volatility, beta 1.04, Low D/E 2.1%, current ratio 3.27x
- Lower P/E (21.2x vs 39.7x)
Best for: long-term compounding and sleep-well-at-night
GWRE
Guidewire Software, Inc.
The Income Pick
GWRE is the clearest fit if your priority is income & stability and growth exposure.
- beta 0.61
- Rev growth 22.6%, EPS growth 11.9%, 3Y rev CAGR 14.0%
- Beta 0.61, current ratio 2.77x
Best for: income & stability and growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | GWRE | 22.6% revenue growth vs HQY's 9.5% |
| Value | HQY | Lower P/E (21.2x vs 39.7x) |
| Quality / Margins | HQY | 16.4% margin vs GWRE's 14.1% |
| Stability / Safety | GWRE | Beta 0.61 vs HQY's 1.04 |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | HQY | -8.4% vs GWRE's -34.5% |
| Efficiency (ROA) | GWRE | 7.2% ROA vs HQY's 6.3%, ROIC 2.3% vs 10.2% |
HQY vs GWRE — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2026
FY 2025
HQY vs GWRE — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLHQYLAGGINGGWRE
GWREGuidewire Software, I…
0leads
HQYHealthEquity, Inc.
3leads
6 Total Categories
CATEGORYLEADERvs GWREMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
HQY4/6
Valuation MetricsMultiples, price ratios, and targets
HQY6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
HQY6/9
Total Returns1Y, 3Y, 5Y total returns with dividends
Tied
—
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
—
—
Income & Cash Flow (Last 12 Months)
HQY leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
GWRE and HQY operate at a comparable scale, with $1.3B and $1.3B in trailing revenue. Profitability is closely matched — net margins range from 16.4% (HQY) to 14.1% (GWRE). On growth, GWRE holds the edge at +24.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | HQYHealthEquity, Inc. | GWREGuidewire Softwar… |
|---|---|---|
| RevenueTrailing 12 months | $1.3B | $1.3B |
| EBITDAEarnings before interest/tax | $322M | $103M |
| Net IncomeAfter-tax profit | $215M | $189M |
| Free Cash FlowCash after capex | $439M | $310M |
| Gross MarginGross profit ÷ Revenue | +69.5% | +63.8% |
| Operating MarginEBIT ÷ Revenue | +24.6% | +6.8% |
| Net MarginNet income ÷ Revenue | +16.4% | +14.1% |
| FCF MarginFCF ÷ Revenue | +33.4% | +23.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +7.3% | +24.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +93.3% | +2.6% |
HQY leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
HQY leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 34.1x trailing earnings, HQY trades at a 80% valuation discount to GWRE's 172.3x P/E. On an enterprise value basis, HQY's 21.3x EV/EBITDA is more attractive than GWRE's 182.3x.
| Metric | HQYHealthEquity, Inc. | GWREGuidewire Softwar… |
|---|---|---|
| Market CapShares × price | $7.1B | $11.8B |
| Enterprise ValueMkt cap + debt − cash | $6.9B | $11.8B |
| Trailing P/EPrice ÷ TTM EPS | 34.14x | 172.32x |
| Forward P/EPrice ÷ next-FY EPS est. | 21.23x | 39.70x |
| PEG RatioP/E ÷ EPS growth rate | 0.41x | — |
| EV / EBITDAEnterprise value multiple | 21.29x | 182.26x |
| Price / SalesMarket cap ÷ Revenue | 5.44x | 9.81x |
| Price / BookPrice ÷ Book value/share | 3.49x | 8.23x |
| Price / FCFMarket cap ÷ FCF | 15.69x | 39.98x |
HQY leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
HQY leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
GWRE delivers a 12.9% return on equity — every $100 of shareholder capital generates $13 in annual profit, vs $10 for HQY. HQY carries lower financial leverage with a 0.02x debt-to-equity ratio, signaling a more conservative balance sheet compared to GWRE's 0.49x. On the Piotroski fundamental quality scale (0–9), HQY scores 9/9 vs GWRE's 7/9, reflecting strong financial health.
| Metric | HQYHealthEquity, Inc. | GWREGuidewire Softwar… |
|---|---|---|
| ROE (TTM)Return on equity | +10.1% | +12.9% |
| ROA (TTM)Return on assets | +6.3% | +7.2% |
| ROICReturn on invested capital | +10.2% | +2.3% |
| ROCEReturn on capital employed | +9.8% | +2.3% |
| Piotroski ScoreFundamental quality 0–9 | 9 | 7 |
| Debt / EquityFinancial leverage | 0.02x | 0.49x |
| Net DebtTotal debt minus cash | -$275M | $17M |
| Cash & Equiv.Liquid assets | $319M | $699M |
| Total DebtShort + long-term debt | $44M | $716M |
| Interest CoverageEBIT ÷ Interest expense | 5.64x | 388.85x |
HQY leads this category, winning 6 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
Evenly matched — HQY and GWRE each lead in 3 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in GWRE five years ago would be worth $14,142 today (with dividends reinvested), compared to $11,269 for HQY. Over the past 12 months, HQY leads with a -8.4% total return vs GWRE's -34.5%. The 3-year compound annual growth rate (CAGR) favors GWRE at 21.6% vs HQY's 16.0% — a key indicator of consistent wealth creation.
| Metric | HQYHealthEquity, Inc. | GWREGuidewire Softwar… |
|---|---|---|
| YTD ReturnYear-to-date | -7.8% | -25.6% |
| 1-Year ReturnPast 12 months | -8.4% | -34.5% |
| 3-Year ReturnCumulative with dividends | +56.0% | +79.6% |
| 5-Year ReturnCumulative with dividends | +12.7% | +41.4% |
| 10-Year ReturnCumulative with dividends | +228.2% | +151.9% |
| CAGR (3Y)Annualised 3-year return | +16.0% | +21.6% |
Evenly matched — HQY and GWRE each lead in 3 of 6 comparable metrics.
Risk & Volatility
Evenly matched — HQY and GWRE each lead in 1 of 2 comparable metrics.
Risk & Volatility
GWRE is the less volatile stock with a 0.61 beta — it tends to amplify market swings less than HQY's 1.04 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. HQY currently trades 72.0% from its 52-week high vs GWRE's 51.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | HQYHealthEquity, Inc. | GWREGuidewire Softwar… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.04x | 0.61x |
| 52-Week HighHighest price in past year | $116.65 | $272.60 |
| 52-Week LowLowest price in past year | $72.90 | $115.57 |
| % of 52W HighCurrent price vs 52-week peak | +72.0% | +51.2% |
| RSI (14)Momentum oscillator 0–100 | 52.7 | 41.6 |
| Avg Volume (50D)Average daily shares traded | 876K | 1.4M |
Evenly matched — HQY and GWRE each lead in 1 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates HQY as "Buy" and GWRE as "Buy". Consensus price targets imply 75.6% upside for GWRE (target: $245) vs 30.8% for HQY (target: $110).
| Metric | HQYHealthEquity, Inc. | GWREGuidewire Softwar… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $109.89 | $245.17 |
| # AnalystsCovering analysts | 27 | 26 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 2 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +4.2% | 0.0% |
Insufficient data to determine a leader in this category.
Key Takeaway
HQY leads in 3 of 6 categories — strongest in Income & Cash Flow and Valuation Metrics. 2 categories are tied.
Best OverallHealthEquity, Inc. (HQY)Leads 3 of 6 categories
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HQY vs GWRE: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is HQY or GWRE a better buy right now?
For growth investors, Guidewire Software, Inc.
(GWRE) is the stronger pick with 22. 6% revenue growth year-over-year, versus 9. 5% for HealthEquity, Inc. (HQY). HealthEquity, Inc. (HQY) offers the better valuation at 34. 1x trailing P/E (21. 2x forward), making it the more compelling value choice. Analysts rate HealthEquity, Inc. (HQY) a "Buy" — based on 27 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 — HQY or GWRE?
On trailing P/E, HealthEquity, Inc.
(HQY) is the cheapest at 34. 1x versus Guidewire Software, Inc. at 172. 3x. On forward P/E, HealthEquity, Inc. is actually cheaper at 21. 2x.
03Which is the better long-term investment — HQY or GWRE?
Over the past 5 years, Guidewire Software, Inc.
(GWRE) delivered a total return of +41. 4%, compared to +12. 7% for HealthEquity, Inc. (HQY). Over 10 years, the gap is even starker: HQY returned +228. 2% versus GWRE's +151. 9%. 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 — HQY or GWRE?
By beta (market sensitivity over 5 years), Guidewire Software, Inc.
(GWRE) is the lower-risk stock at 0. 61β versus HealthEquity, Inc. 's 1. 04β — meaning HQY is approximately 70% more volatile than GWRE relative to the S&P 500. On balance sheet safety, HealthEquity, Inc. (HQY) carries a lower debt/equity ratio of 2% versus 49% for Guidewire Software, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — HQY or GWRE?
By revenue growth (latest reported year), Guidewire Software, Inc.
(GWRE) is pulling ahead at 22. 6% versus 9. 5% for HealthEquity, Inc. (HQY). On earnings-per-share growth, the picture is similar: Guidewire Software, Inc. grew EPS 1192% year-over-year, compared to 125. 7% for HealthEquity, Inc.. Over a 3-year CAGR, HQY leads at 15. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — HQY or GWRE?
HealthEquity, Inc.
(HQY) is the more profitable company, earning 16. 4% net margin versus 5. 8% for Guidewire Software, Inc. — meaning it keeps 16. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HQY leads at 24. 6% versus 3. 4% for GWRE. At the gross margin level — before operating expenses — HQY leads at 69. 5%, 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.
07Is HQY or GWRE more undervalued right now?
On forward earnings alone, HealthEquity, Inc.
(HQY) trades at 21. 2x forward P/E versus 39. 7x for Guidewire Software, Inc. — 18. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GWRE: 75. 6% to $245. 17.
08Which pays a better dividend — HQY 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.
09Is HQY 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. 61), +151. 9% 10Y return). Both have compounded well over 10 years (GWRE: +151. 9%, HQY: +228. 2%), 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.
10What are the main differences between HQY and GWRE?
These companies operate in different sectors (HQY (Healthcare) and GWRE (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.
In terms of investment character: HQY is a small-cap quality compounder stock; GWRE is a mid-cap high-growth stock. 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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Revenue Growth>
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(HQY: 7.3% · GWRE: 24.0%)Net Margin>
%
(HQY: 16.4% · GWRE: 14.1%)P/E Ratio<
x
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