CDW vs Five Below Which Performs Better?

CDW Corporation (CDW) and Five Below, Inc. (FIVE) are two leading companies in the retail sector with unique business models and growth potential. CDW is a provider of technology solutions and services, catering to the needs of businesses and government organizations. On the other hand, Five Below is a discount retailer targeting teens and tweens with a wide range of trendy products priced at $5 and below. Both companies have demonstrated strong financial performance and are considered attractive investment opportunities for different types of investors.

CDW or Five Below?

When comparing CDW and Five Below, 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 Five Below.

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 1.38%, while Five Below 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, Five Below 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 21.66 and Five Below's P/E ratio at 23.11. 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 10.23 while Five Below's P/B ratio is 3.84.

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 Five Below's is 1.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CDW's ROE at 50.99% and Five Below's ROE at 16.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $178.33 for CDW and $111.10 for Five Below. Over the past year, CDW's prices ranged from $172.95 to $263.37, with a yearly change of 52.28%. Five Below's prices fluctuated between $64.87 and $216.18, with a yearly change of 233.25%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.