CDW vs CrowdStrike Which Is More Reliable?

CDW Corporation and CrowdStrike Holdings are two prominent players in the technology sector, with CDW specializing in IT solutions and services, and CrowdStrike focusing on cloud-based cybersecurity. Both companies have seen significant growth in recent years, but their stock performance has differed. CDW has a strong track record of consistent revenue growth and profitability, while CrowdStrike has experienced rapid growth but with higher volatility. Investors should carefully consider the unique strengths and risks of each company before making investment decisions.

CDW or CrowdStrike?

When comparing CDW and CrowdStrike, 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 CrowdStrike.

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 CrowdStrike 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, CrowdStrike 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 CrowdStrike's P/E ratio at 491.09. 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 CrowdStrike's P/B ratio is 29.30.

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 CrowdStrike's is 12.86%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CDW's ROE at 50.99% and CrowdStrike's ROE at 7.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $197.16 for CDW and $331.88 for CrowdStrike. Over the past year, CDW's prices ranged from $187.73 to $263.37, with a yearly change of 40.29%. CrowdStrike's prices fluctuated between $197.17 and $398.33, with a yearly change of 102.02%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.