PC Connection vs CDW

PC Connection and CDW are both leading providers of technology products and services in the United States. While PC Connection focuses on serving small to medium-sized businesses, CDW caters to larger organizations and government agencies. Both companies have seen impressive growth in recent years due to the increasing demand for technology solutions. Investors looking to capitalize on the tech sector may find opportunities in both PC Connection and CDW stocks, but careful analysis and comparison of their financial performance and market trends are essential.

PC Connection or CDW?

When comparing PC Connection 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 PC Connection 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. PC Connection has a dividend yield of 0.65%, while CDW has a dividend yield of 1.13%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. PC Connection reports a 5-year dividend growth of -1.21% year and a payout ratio of 10.68%. On the other hand, CDW reports a 5-year dividend growth of 20.91% year and a payout ratio of 29.63%.

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 PC Connection P/E ratio at 21.87 and CDW's P/E ratio at 26.62. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PC Connection P/B ratio is 2.22 while CDW's P/B ratio is 13.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, PC Connection has seen a 5-year revenue growth of 0.07%, while CDW's is 0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PC Connection's ROE at 10.47% and CDW's ROE at 54.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $73.50 for PC Connection and $219.15 for CDW. Over the past year, PC Connection's prices ranged from $51.64 to $77.19, with a yearly change of 49.48%. CDW's prices fluctuated between $185.04 and $263.37, with a yearly change of 42.33%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.