Softchoice vs CDW Which Is More Reliable?

Softchoice and CDW are both leading providers of technology solutions and services in North America. Softchoice specializes in helping organizations optimize their IT infrastructure, while CDW offers a wide range of products and services to meet the needs of businesses of all sizes. Both companies have seen growth in recent years, but have different business models and target markets. Investors looking to add tech stocks to their portfolio may want to consider the potential for growth and stability offered by Softchoice and CDW.

Softchoice or CDW?

When comparing Softchoice 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 Softchoice 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. Softchoice has a dividend yield of 19.79%, while CDW has a dividend yield of 1.41%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Softchoice reports a 5-year dividend growth of 0.00% year and a payout ratio of 504.10%. 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 Softchoice P/E ratio at 24.77 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. Softchoice P/B ratio is -8.70 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, Softchoice has seen a 5-year revenue growth of -0.43%, while CDW's is 0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Softchoice's ROE at -53.36% and CDW's ROE at 50.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are C$22.74 for Softchoice and $175.49 for CDW. Over the past year, Softchoice's prices ranged from C$14.40 to C$24.45, with a yearly change of 69.79%. 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.