ASOS vs CDW Which Outperforms?

ASOS and CDW are two prominent companies in the retail and technology sectors respectively. ASOS is an online fashion retailer known for its trendy and affordable clothing options, while CDW is a leading provider of IT solutions for businesses. Both companies have seen significant growth in recent years, but their stock performance differs. ASOS has experienced fluctuations due to changing consumer trends, while CDW has shown consistent growth due to increased demand for technology services. Investors should carefully consider the strengths and weaknesses of each company before making investment decisions.

ASOS or CDW?

When comparing ASOS 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 ASOS 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. ASOS has a dividend yield of -%, while CDW has a dividend yield of 1.38%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ASOS 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 ASOS P/E ratio at -1.84 and CDW's P/E ratio at 21.66. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ASOS P/B ratio is 0.88 while CDW's P/B ratio is 10.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ASOS has seen a 5-year revenue growth of 0.17%, while CDW's is 0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASOS's ROE at -43.49% and CDW's ROE at 50.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.90 for ASOS and $178.33 for CDW. Over the past year, ASOS's prices ranged from $4.11 to $5.89, with a yearly change of 43.31%. 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.