CDW vs Softchoice Which Is More Promising?

CDW and Softchoice are two leading technology companies in the IT industry with solid track records of growth and innovation. CDW specializes in providing IT solutions and services to businesses, while Softchoice focuses on cloud and software solutions. Both companies have shown strong financial performance in recent years, but their stock performances have differed. CDW’s stock has experienced steady growth, while Softchoice’s stock has shown more volatility. Investors should carefully analyze both companies’ financial indicators and market trends before making investment decisions.

CDW or Softchoice?

When comparing CDW and Softchoice, 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 Softchoice.

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 Softchoice has a dividend yield of 19.79%. 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, Softchoice reports a 5-year dividend growth of 0.00% year and a payout ratio of 504.10%.

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 Softchoice's P/E ratio at 24.75. 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 Softchoice's P/B ratio is -8.69.

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 Softchoice's is -0.43%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CDW's ROE at 50.99% and Softchoice's ROE at -53.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $175.49 for CDW and C$22.74 for Softchoice. Over the past year, CDW's prices ranged from $172.95 to $263.37, with a yearly change of 52.28%. Softchoice's prices fluctuated between C$14.40 and C$24.45, with a yearly change of 69.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.