CDW vs Fastly Which Is Superior?

CDW Corporation and Fastly are two technology companies with distinct business models in the stock market. CDW is a leading provider of technology solutions for businesses, while Fastly provides edge cloud platform services for content delivery and security. Investors interested in these two stocks may be looking to diversify their portfolios with exposure to the technology sector. Understanding the financial performance, growth potential, and market trends of CDW and Fastly stocks is crucial for making informed investment decisions.

CDW or Fastly?

When comparing CDW and Fastly, 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 Fastly.

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 Fastly 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, Fastly 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 Fastly's P/E ratio at -9.82. 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 Fastly's P/B ratio is 1.51.

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 Fastly's is 1.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CDW's ROE at 50.99% and Fastly's ROE at -15.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $175.49 for CDW and $10.38 for Fastly. Over the past year, CDW's prices ranged from $172.95 to $263.37, with a yearly change of 52.28%. Fastly's prices fluctuated between $5.52 and $25.87, with a yearly change of 368.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.