CDW vs Amazon.com Which Is More Reliable?

Comparing CDW Corporation and Amazon.com, Inc. stocks involves examining two very different companies operating in distinct sectors of the market. CDW is a leading provider of technology products and services to businesses and organizations, focusing on IT solutions. In contrast, Amazon.com is an e-commerce giant with diverse revenue streams, including online retail, cloud computing, and entertainment. Understanding the strengths, weaknesses, and growth potential of each company is essential for investors looking to make informed decisions in the stock market.

CDW or Amazon.com?

When comparing CDW and Amazon.com, 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 CDW and Amazon.com.

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. CDW has a dividend yield of 1.25%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CDW reports a 5-year dividend growth of 20.91% year and a payout ratio of 29.93%. On the other hand, Amazon.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 CDW P/E ratio at 23.80 and Amazon.com's P/E ratio at 43.56. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CDW P/B ratio is 11.24 while Amazon.com's P/B ratio is 8.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CDW has seen a 5-year revenue growth of 0.48%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CDW's ROE at 50.99% and Amazon.com's ROE at 21.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $197.16 for CDW and $205.59 for Amazon.com. Over the past year, CDW's prices ranged from $187.73 to $263.37, with a yearly change of 40.29%. Amazon.com's prices fluctuated between $139.52 and $212.25, with a yearly change of 52.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.