CDW vs DoorDash

CDW Corporation and DoorDash Inc. are two companies that are frequently compared in the world of stock investing. CDW is a leading provider of technology solutions for businesses, while DoorDash is a popular food delivery service. Both companies have seen significant growth in recent years, but their stock performance has been quite different. CDW has a more stable track record with consistent growth, while DoorDash has experienced more volatility due to the nature of its industry. Investors should carefully consider their investment goals and risk tolerance when evaluating these two stocks.

CDW or DoorDash?

When comparing CDW and DoorDash, 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 DoorDash.

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 DoorDash 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, DoorDash 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 DoorDash's P/E ratio at -150.14. 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 DoorDash's P/B ratio is 8.53.

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 DoorDash's is 20.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CDW's ROE at 54.31% and DoorDash's ROE at -5.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $219.15 for CDW and $143.37 for DoorDash. Over the past year, CDW's prices ranged from $185.04 to $263.37, with a yearly change of 42.33%. DoorDash's prices fluctuated between $69.90 and $150.29, with a yearly change of 115.01%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.