CDW vs Expedia Which Is More Favorable?

CDW Corporation and Expedia Group are two well-known companies in the technology and travel industries, respectively. Both companies have seen significant growth in their stock values in recent years, but the comparison between CDW and Expedia stocks reveals some key differences. CDW is a leading provider of technology solutions for businesses, while Expedia is a global online travel agency. Investors looking to diversify their portfolio may want to consider the performance and potential of these two distinct companies in the stock market.

CDW or Expedia?

When comparing CDW and Expedia, 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 Expedia.

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 Expedia 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, Expedia 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 Expedia's P/E ratio at 22.42. 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 Expedia's P/B ratio is 18.09.

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 Expedia's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CDW's ROE at 50.99% and Expedia's ROE at 92.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $197.16 for CDW and $180.02 for Expedia. Over the past year, CDW's prices ranged from $187.73 to $263.37, with a yearly change of 40.29%. Expedia's prices fluctuated between $107.25 and $190.40, with a yearly change of 77.53%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.