Insight Enterprises vs CDW Which Is Stronger?

Insight Enterprises and CDW are two prominent companies in the technology and information technology services sector. Both companies operate in the distribution and resale of IT products and services, catering to a wide range of businesses and organizations. As publicly traded companies, their stocks are actively traded on the stock market, offering potential investors opportunities for growth and profitability. Understanding the financial performance, market position, and growth prospects of Insight Enterprises and CDW is crucial for making informed investment decisions.

Insight Enterprises or CDW?

When comparing Insight Enterprises and CDW, 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 Insight Enterprises and CDW.

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. Insight Enterprises has a dividend yield of -%, while CDW has a dividend yield of 1.38%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Insight Enterprises reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, CDW reports a 5-year dividend growth of 20.91% year and a payout ratio of 29.93%.

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 Insight Enterprises P/E ratio at 17.26 and CDW's P/E ratio at 21.66. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Insight Enterprises P/B ratio is 2.96 while CDW's P/B ratio is 10.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Insight Enterprises has seen a 5-year revenue growth of 0.40%, while CDW's is 0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Insight Enterprises's ROE at 17.07% and CDW's ROE at 50.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $160.59 for Insight Enterprises and $178.33 for CDW. Over the past year, Insight Enterprises's prices ranged from $146.56 to $228.07, with a yearly change of 55.62%. CDW's prices fluctuated between $172.95 and $263.37, with a yearly change of 52.28%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.