AutoZone vs CDW Which Is More Reliable?

AutoZone and CDW are two well-known companies in the retail and technology sectors respectively. AutoZone is a leading retailer of automotive parts and accessories, while CDW is a provider of technology solutions and services. Both companies have seen strong performance in recent years, but they operate in different industries with varying growth prospects. Investors interested in these stocks should consider factors such as their financial performance, competitive positioning, and market trends to make an informed decision.

AutoZone or CDW?

When comparing AutoZone 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 AutoZone 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. AutoZone has a dividend yield of -%, while CDW has a dividend yield of 1.25%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AutoZone 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 AutoZone P/E ratio at 20.73 and CDW's P/E ratio at 23.80. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AutoZone P/B ratio is -11.62 while CDW's P/B ratio is 11.24.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AutoZone has seen a 5-year revenue growth of 1.27%, while CDW's is 0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AutoZone's ROE at -54.23% and CDW's ROE at 50.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3117.96 for AutoZone and $197.16 for CDW. Over the past year, AutoZone's prices ranged from $2510.00 to $3256.37, with a yearly change of 29.74%. CDW's prices fluctuated between $187.73 and $263.37, with a yearly change of 40.29%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.