CDW vs GameStop Which Is More Profitable?

CDW Corporation and GameStop Corporation are two prominent stocks in the technology and gaming industries, respectively. CDW is a leading provider of technology solutions and services for businesses, while GameStop is a retailer of video games and gaming accessories. Both stocks have experienced fluctuations in recent years, with CDW showing steady growth and GameStop facing challenges due to the shift towards digital gaming. Investors interested in these stocks should carefully consider their respective performances and market potential before making investment decisions.

CDW or GameStop?

When comparing CDW and GameStop, 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 GameStop.

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 1.39%, while GameStop 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, GameStop 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 21.44 and GameStop's P/E ratio at 201.13. 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 10.13 while GameStop's P/B ratio is 2.64.

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 GameStop's is -0.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CDW's ROE at 50.99% and GameStop's ROE at 2.13%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $175.99 for CDW and $27.51 for GameStop. Over the past year, CDW's prices ranged from $172.95 to $263.37, with a yearly change of 52.28%. GameStop's prices fluctuated between $9.95 and $64.83, with a yearly change of 551.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.