CDW vs Chewy Which Is More Lucrative?

CDW and Chewy are two well-known companies in the technology and pet industry respectively. CDW is a provider of technology products and services to businesses, while Chewy is an online retailer of pet supplies. Both companies have seen significant growth in their stock prices in recent years, but there are key differences between the two. CDW has a strong track record of consistent revenue growth, while Chewy is a newer player in the market with high potential for expansion. Investors should carefully consider the unique qualities of each stock before making a decision.

CDW or Chewy?

When comparing CDW and Chewy, 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 Chewy.

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 1.41%, while Chewy 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, Chewy 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 21.18 and Chewy's P/E ratio at 33.07. 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 10.00 while Chewy's P/B ratio is 59.83.

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 Chewy's is 1.89%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CDW's ROE at 50.99% and Chewy's ROE at 86.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $175.49 for CDW and $31.73 for Chewy. Over the past year, CDW's prices ranged from $172.95 to $263.37, with a yearly change of 52.28%. Chewy's prices fluctuated between $14.69 and $39.10, with a yearly change of 166.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.