CDW vs PC Connection Which Performs Better?

CDW Corporation and PC Connection, Inc. are two leading companies in the technology solutions industry, specializing in providing hardware, software, and services to businesses and organizations. Both companies have experienced steady growth in recent years, with CDW focusing on large enterprise clients and PC Connection catering to small and medium-sized businesses. Investors may consider factors such as financial performance, market trends, and competitive positioning when evaluating the stocks of these companies for potential investment opportunities.

CDW or PC Connection?

When comparing CDW and PC Connection, 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 PC Connection.

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 PC Connection has a dividend yield of 0.55%. 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, PC Connection reports a 5-year dividend growth of -1.21% year and a payout ratio of 11.10%.

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 PC Connection's P/E ratio at 21.09. 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 PC Connection's P/B ratio is 2.12.

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 PC Connection's is 0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CDW's ROE at 50.99% and PC Connection's ROE at 10.40%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $175.49 for CDW and $71.90 for PC Connection. Over the past year, CDW's prices ranged from $172.95 to $263.37, with a yearly change of 52.28%. PC Connection's prices fluctuated between $57.47 and $77.19, with a yearly change of 34.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.