Financial Survey: Kaltura (NASDAQ:KLTR) versus Guidewire Software (NYSE:GWRE)

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

Risk & Volatility

Guidewire Software has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Kaltura has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Guidewire Software	5.81%	9.00%	4.66%
Kaltura	-10.52%	-57.20%	-7.18%

Insider & Institutional Ownership

30.8% of Kaltura shares are held by institutional investors. 0.5% of Guidewire Software shares are held by company insiders. Comparatively, 13.5% of Kaltura shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Guidewire Software	$1.20 billion	16.25	$69.80 million	$0.80	288.89
Kaltura	$178.72 million	1.30	-$31.32 million	($0.12)	-12.50

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Guidewire Software and Kaltura, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Guidewire Software	1	3	9	0	2.62
Kaltura	1	0	1	0	2.00

Guidewire Software presently has a consensus target price of $274.08, suggesting a potential upside of 18.59%. Kaltura has a consensus target price of $2.25, suggesting a potential upside of 50.00%. Given Kaltura’s higher probable upside, analysts clearly believe Kaltura is more favorable than Guidewire Software.

Summary

Guidewire Software beats Kaltura on 11 of the 14 factors compared between the two stocks.

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.

About Kaltura

Kaltura, Inc. provides various software-as-a-service (SaaS) products and solutions and a platform-as-a-service (PaaS) in the United States, Europe, the Middle East, Africa, and internationally. The company operates through two segments, Enterprise, Education, and Technology (EE&T); and Media and Telecom (M&T). It offers video products, such as virtual and hybrid events, webinars, video portals, online learning, and content portals for training, marketing, virtual and hybrid events, communication, collaboration, sales, and customer care; and education solutions, such as learning management system video and lecture capture solutions. The company also provides online video experiences, including for over-the-top (OTT) television, cloud TV, web video publishing, video-based teaching, learning, training, video-based marketing, and video-based collaboration. In addition, it offers application programming interfaces (APIs), software development kits, and experience components, including live, real-time and on-demand video, ingestion, transcoding, enrichment, management, distribution, engagement, monetization, and deep viewer analytics, as well as video player, video editor, video capture tool, and chat and networking widgets. The company serves a range of industries, including financial services, high technology, healthcare and pharmaceuticals, education, public sector, media, telecommunications, information technology (IT) and professional services, retail, and manufacturing. Kaltura, Inc. was incorporated in 2006 and is headquartered in New York, New York.