Critical Survey: CDW Corporation (CDW) and Its Competitors
CDW Corporation (NASDAQ: CDW) is one of 196 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its competitors? We will compare CDW Corporation to similar companies based on the strength of its dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.
CDW Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 1.0%. CDW Corporation pays out 24.3% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.7% and pay out 36.1% of their earnings in the form of a dividend.
Risk and Volatility
CDW Corporation has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, CDW Corporation’s competitors have a beta of 1.27, meaning that their average share price is 27% more volatile than the S&P 500.
This table compares CDW Corporation and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CDW Corporation Competitors||-22.23%||-65.79%||-4.47%|
Valuation and Earnings
This table compares CDW Corporation and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|CDW Corporation||$14.52 billion||$1.09 billion||25.10|
|CDW Corporation Competitors||$2.14 billion||$366.31 million||16.00|
CDW Corporation has higher revenue and earnings than its competitors. CDW Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Institutional & Insider Ownership
90.7% of CDW Corporation shares are held by institutional investors. Comparatively, 61.8% of shares of all “IT Services & Consulting” companies are held by institutional investors. 2.6% of CDW Corporation shares are held by insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for CDW Corporation and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CDW Corporation Competitors||1004||5169||7765||221||2.51|
CDW Corporation presently has a consensus target price of $66.56, suggesting a potential upside of 0.85%. As a group, “IT Services & Consulting” companies have a potential upside of 1.44%. Given CDW Corporation’s competitors higher possible upside, analysts clearly believe CDW Corporation has less favorable growth aspects than its competitors.
CDW Corporation beats its competitors on 11 of the 15 factors compared.
CDW Corporation Company Profile
CDW Corporation (CDW) is a provider of integrated information technology (IT) solutions in the United States, Canada and the United Kingdom. The Company’s segments include Corporate, Public and Other. The Corporate segment consists of private sector business customers in the United States based on employee size between Medium/Large customers, which primarily includes organizations with more than 100 employees, and Small Business customers, which primarily includes organizations with up to 100 employees. Its Public segment comprises government agencies and education and healthcare institutions in the United States. Its Other segment includes Canada and CDW UK. The CDW Advanced Services business consists primarily of customized engineering services delivered by technology specialists and engineers, and managed services that include Infrastructure as a Service (IaaS) offerings. The Company has centralized logistics and headquarters functions that provide services to the segments.
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