CDW vs FedEx

CDW Corporation and FedEx Corporation are two well-known companies in the technology and logistics industries, respectively. CDW specializes in providing IT solutions to businesses and organizations, while FedEx is a global leader in shipping and logistics services. Both companies have experienced steady growth and success in recent years, but their stocks have performed differently in the market. This comparison will analyze the performance, financials, and potential investment opportunities of CDW versus FedEx stocks.

CDW or FedEx?

When comparing CDW and FedEx, 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 FedEx.

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 FedEx has a dividend yield of 1.99%. 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, FedEx reports a 5-year dividend growth of 15.01% year and a payout ratio of 31.63%.

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 FedEx's P/E ratio at 16.23. 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 FedEx's P/B ratio is 2.42.

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 FedEx's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CDW's ROE at 54.31% and FedEx's ROE at 15.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $219.15 for CDW and $265.66 for FedEx. Over the past year, CDW's prices ranged from $185.04 to $263.37, with a yearly change of 42.33%. FedEx's prices fluctuated between $224.69 and $313.84, with a yearly change of 39.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.