Broadridge Financial Solutions, Inc. (BR) vs CDW Corporation (CDW)

Broadridge Financial Solutions, Inc. and CDW Corporation are both Information Technology Services companies. Broadridge Financial Solutions, Inc. and CDW Corporation are of similar size ($19.2B and $17.4B). CDW Corporation trades at the lower P/E: 16.2× against 16.9×. Broadridge Financial Solutions, Inc. grew revenue faster over the last twelve months: 8.53% against 7.41%. Broadridge Financial Solutions, Inc. has the higher net margin (15.0% vs 4.60%) and the higher return on invested capital (14.3% vs 13.3%). Both pay a dividend; Broadridge Financial Solutions, Inc. yields more (1.59% vs 1.05%). Across the 23 metrics below, Broadridge Financial Solutions, Inc. leads on 17 and CDW Corporation on 6.

Valuation

Metric BR CDW Information Technology Services median
P/E 16.90 16.22 14.63
P/S 2.55 0.73 1.13
P/B 6.71 7.04 2.10
Price to free cash flow 15.97 19.99 10.11
EV/EBITDA 12.38 11.46 8.56
EV/Sales 3.00 0.96 1.20
Earnings yield 5.92% 6.17% 4.56%
Free cash flow yield 6.26% 5.00% 4.37%

Profitability

Metric BR CDW Information Technology Services median
Gross margin 31.78% 21.36% 31.05%
Operating margin 17.40% 7.14% 3.30%
Net margin 15.04% 4.60% 2.09%
Free cash flow margin 16.49% 3.66% 0.00%
Return on equity 40.91% 44.01% 4.12%
Return on assets 12.86% 6.64% 0.61%
Return on invested capital 14.28% 13.28% 0.57%

Growth

Metric BR CDW Information Technology Services median
Revenue growth (TTM) 8.53% 7.41% 7.12%
EPS growth (last fiscal year) 35.21% 1.38% —
Revenue growth, 5-year CAGR 8.41% 3.96% 7.71%
Net income growth, 5-year CAGR 15.48% 6.23% 0.00%

Health

Metric BR CDW Information Technology Services median
Debt to equity 1.15 2.38 0.45
Current ratio 1.24 1.17 1.66
Net debt to EBITDA 1.58 2.57 0.44

Dividend

Metric BR CDW Information Technology Services median
Dividend yield 1.59% 1.05% 1.21%
Payout ratio 0.55 0.29 0.00

Size

Metric BR CDW Information Technology Services median
Market cap 19.15b 17.43b 1.36b

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