NTT DATA vs CDW Which Is a Smarter Choice?

NTT DATA and CDW are two prominent companies in the technology sector, with a focus on providing information technology services and solutions to businesses and organizations. NTT DATA is a global IT services provider based in Japan, while CDW is a leading provider of technology solutions in North America. Both companies have shown strong performance in the stock market, with NTT DATA experiencing steady growth and CDW showcasing resilience in the face of market challenges. Investors looking for opportunities in the tech sector may find these two stocks worth considering.

NTT DATA or CDW?

When comparing NTT DATA 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 NTT DATA 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. NTT DATA has a dividend yield of -%, while CDW has a dividend yield of 1.41%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NTT DATA reports a 5-year dividend growth of 0.00% year and a payout ratio of 25.33%. 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 NTT DATA P/E ratio at 32.20 and CDW's P/E ratio at 21.18. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NTT DATA P/B ratio is 2.27 while CDW's P/B ratio is 10.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NTT DATA has seen a 5-year revenue growth of 0.71%, while CDW's is 0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NTT DATA's ROE at 7.60% and CDW's ROE at 50.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $19.04 for NTT DATA and $175.49 for CDW. Over the past year, NTT DATA's prices ranged from $12.71 to $20.73, with a yearly change of 63.10%. 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.