AAP vs CDW Which Is More Reliable?

AAP (Advance Auto Parts) and CDW (CDW Corporation) are two prominent stocks in the automotive and technology sectors, respectively. AAP has steadily grown its revenue and profits as a leading retailer of automotive parts and accessories, while CDW has capitalized on the increasing demand for technology solutions in various industries. Both companies have strong fundamentals and a track record of delivering shareholder value. Investors may consider factors such as industry trends, financial performance, and growth potential when comparing AAP vs CDW stocks.

AAP or CDW?

When comparing AAP and CDW, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AAP and CDW.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AAP has a dividend yield of -%, while CDW has a dividend yield of 1.39%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AAP reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, CDW reports a 5-year dividend growth of 20.91% year and a payout ratio of 29.93%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AAP P/E ratio at -2.69 and CDW's P/E ratio at 21.44. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AAP P/B ratio is -0.60 while CDW's P/B ratio is 10.13.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AAP has seen a 5-year revenue growth of 0.24%, while CDW's is 0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AAP's ROE at 23.86% and CDW's ROE at 50.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.00 for AAP and $175.99 for CDW. Over the past year, AAP's prices ranged from $0.00 to $0.00, with a yearly change of 500.00%. CDW's prices fluctuated between $172.95 and $263.37, with a yearly change of 52.28%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.