CDW vs UnitedHealth Which Is More Reliable?

CDW Corporation (CDW) and UnitedHealth Group Incorporated (UNH) are two major players in the healthcare and technology industries, respectively. While CDW is a leading provider of technology solutions for businesses, UnitedHealth is a diversified healthcare company that offers insurance, pharmacy services, and healthcare delivery. Both companies have experienced growth and success in their respective sectors, making them attractive options for investors looking for stable and consistent returns. However, their stock performance and potential for future growth may vary based on market trends and industry factors.

CDW or UnitedHealth?

When comparing CDW and UnitedHealth, 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 UnitedHealth.

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 UnitedHealth has a dividend yield of 2.26%. 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, UnitedHealth reports a 5-year dividend growth of 0.00% year and a payout ratio of 51.26%.

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 21.42 and UnitedHealth's P/E ratio at 1.12. 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 10.12 while UnitedHealth's P/B ratio is 0.17.

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 UnitedHealth's is 0.70%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CDW's ROE at 50.99% and UnitedHealth's ROE at 15.94%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $176.15 for CDW and C$24.55 for UnitedHealth. Over the past year, CDW's prices ranged from $172.95 to $263.37, with a yearly change of 52.28%. UnitedHealth's prices fluctuated between C$21.03 and C$30.05, with a yearly change of 42.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.