CDW vs Newegg Commerce Which Offers More Value?

CDW Corporation and Newegg Commerce are both leading retailers in the electronics industry, with a focus on offering a wide range of products to consumers and businesses. CDW's stock has shown steady growth over the years, with a strong track record of profitability and customer satisfaction. On the other hand, Newegg Commerce has emerged as a strong competitor in the market, with a growing customer base and innovative e-commerce strategies. Both companies have their unique strengths and opportunities for investors to consider.

CDW or Newegg Commerce?

When comparing CDW and Newegg Commerce, 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 Newegg Commerce.

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 1.25%, while Newegg Commerce 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, Newegg Commerce 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 23.80 and Newegg Commerce's P/E ratio at -4.94. 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 11.24 while Newegg Commerce's P/B ratio is 2.35.

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 Newegg Commerce's is 14.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CDW's ROE at 50.99% and Newegg Commerce's ROE at -42.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $197.16 for CDW and $0.63 for Newegg Commerce. Over the past year, CDW's prices ranged from $187.73 to $263.37, with a yearly change of 40.29%. Newegg Commerce's prices fluctuated between $0.54 and $2.15, with a yearly change of 298.15%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.