CDW vs Sysco Which Should You Buy?

CDW Corporation and Sysco Corporation are two leading companies in their respective industries. CDW is a provider of technology products and services, while Sysco is a foodservice distribution company. Both companies have seen steady growth in recent years, with CDW benefiting from the increased demand for technology solutions and Sysco from the growing foodservice industry. Investors looking to diversify their portfolio may consider both stocks, as they offer exposure to different sectors of the economy. It is important to conduct thorough research and analysis before making any investment decisions.

CDW or Sysco?

When comparing CDW and Sysco, 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 Sysco.

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 Sysco has a dividend yield of 2.59%. 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, Sysco reports a 5-year dividend growth of 6.58% year and a payout ratio of 51.82%.

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 Sysco's P/E ratio at 19.75. 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 11.24 while Sysco's P/B ratio is 17.38.

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 Sysco's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CDW's ROE at 50.99% and Sysco's ROE at 90.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $197.16 for CDW and $77.34 for Sysco. Over the past year, CDW's prices ranged from $187.73 to $263.37, with a yearly change of 40.29%. Sysco's prices fluctuated between $66.87 and $82.89, with a yearly change of 23.96%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.