CDW vs Atlassian

CDW Corporation and Atlassian Corporation are two leading technology companies that have been making waves in the stock market. CDW focuses on providing technology solutions to businesses, while Atlassian specializes in developing collaboration and productivity software. Both companies have shown consistent growth and profitability in recent years, attracting the attention of investors. This comparison will analyze key financial metrics, market performance, and growth prospects to determine which stock may be a better investment opportunity.

CDW or Atlassian?

When comparing CDW and Atlassian, 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 Atlassian.

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 1.13%, while Atlassian 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 29.63%. On the other hand, Atlassian 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 26.62 and Atlassian's P/E ratio at -165.36. 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 13.57 while Atlassian's P/B ratio is 48.11.

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 Atlassian's is 2.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CDW's ROE at 54.31% and Atlassian's ROE at -31.25%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $219.15 for CDW and $190.32 for Atlassian. Over the past year, CDW's prices ranged from $185.04 to $263.37, with a yearly change of 42.33%. Atlassian's prices fluctuated between $135.29 and $258.69, with a yearly change of 91.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.