CDW vs NTT DATA Which Is a Smarter Choice?

CDW Corporation and NTT DATA Corporation are two prominent companies in the technology sector that offer a range of services including IT solutions, consulting, and managed services. While CDW focuses on providing technology products and services to businesses, NTT DATA offers a wide array of IT services to clients across various industries. Both companies have seen fluctuations in their stock prices over the years, making them interesting options for investors looking to capitalize on the ever-evolving tech sector.

CDW or NTT DATA?

When comparing CDW and NTT DATA, 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 NTT DATA.

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 1.4%, while NTT DATA 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, NTT DATA reports a 5-year dividend growth of 0.00% year and a payout ratio of 25.33%.

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 21.37 and NTT DATA's P/E ratio at 29.55. 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 10.09 while NTT DATA's P/B ratio is 2.09.

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 NTT DATA's is 0.71%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CDW's ROE at 50.99% and NTT DATA's ROE at 7.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $175.94 for CDW and $17.41 for NTT DATA. Over the past year, CDW's prices ranged from $175.94 to $263.37, with a yearly change of 49.69%. NTT DATA's prices fluctuated between $11.53 and $18.80, with a yearly change of 63.05%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.