CDW vs Insight Enterprises Which Is Stronger?

CDW and Insight Enterprises are both well-known technology companies that specialize in providing IT solutions to businesses. CDW focuses on offering hardware, software, and managed services, while Insight Enterprises offers a broader range of services including cloud solutions and digital innovation. Both companies have shown strong financial performance over the years, with CDW experiencing steady revenue growth and Insight Enterprises expanding its customer base significantly. Investors looking to diversify their portfolios within the technology sector may find these stocks appealing options.

CDW or Insight Enterprises?

When comparing CDW and Insight Enterprises, 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 Insight Enterprises.

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 Insight Enterprises 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, Insight Enterprises 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 Insight Enterprises's P/E ratio at 16.88. 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 Insight Enterprises's P/B ratio is 2.90.

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 Insight Enterprises's is 0.40%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CDW's ROE at 50.99% and Insight Enterprises's ROE at 17.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $175.49 for CDW and $158.10 for Insight Enterprises. Over the past year, CDW's prices ranged from $172.95 to $263.37, with a yearly change of 52.28%. Insight Enterprises's prices fluctuated between $146.56 and $228.07, with a yearly change of 55.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.