CDW Corporation (CDW) vs Cognizant Technology Solutions Corporation (CTSH)

CDW Corporation and Cognizant Technology Solutions Corporation are both Information Technology Services companies. Cognizant Technology Solutions Corporation is the larger, with a market value of $25.6B against $17.4B — 1.5× the size. Cognizant Technology Solutions Corporation trades at the lower P/E: 12.3× against 16.2×. CDW Corporation grew revenue faster over the last twelve months: 7.41% against 5.64%. Cognizant Technology Solutions Corporation has the higher net margin (10.3% vs 4.60%) and the higher return on invested capital (14.4% vs 13.3%). Both pay a dividend; Cognizant Technology Solutions Corporation yields more (1.57% vs 1.05%). Across the 23 metrics below, Cognizant Technology Solutions Corporation leads on 18 and CDW Corporation on 5.

Valuation

Metric CDW CTSH Information Technology Services median
P/E 16.22 12.28 14.63
P/S 0.73 1.23 1.13
P/B 7.04 1.84 2.10
Price to free cash flow 19.99 10.26 10.11
EV/EBITDA 11.46 6.79 8.56
EV/Sales 0.96 1.25 1.20
Earnings yield 6.17% 8.14% 4.56%
Free cash flow yield 5.00% 9.74% 4.37%

Profitability

Metric CDW CTSH Information Technology Services median
Gross margin 21.36% 33.44% 31.05%
Operating margin 7.14% 15.88% 3.30%
Net margin 4.60% 10.26% 2.09%
Free cash flow margin 3.66% 12.00% 0.00%
Return on equity 44.01% 14.92% 4.12%
Return on assets 6.64% 10.83% 0.61%
Return on invested capital 13.28% 14.38% 0.57%

Growth

Metric CDW CTSH Information Technology Services median
Revenue growth (TTM) 7.41% 5.64% 7.12%
EPS growth (last fiscal year) 1.38% 1.11% —
Revenue growth, 5-year CAGR 3.96% 4.86% 7.71%
Net income growth, 5-year CAGR 6.23% 9.88% 0.00%

Health

Metric CDW CTSH Information Technology Services median
Debt to equity 2.38 0.11 0.45
Current ratio 1.17 2.18 1.66
Net debt to EBITDA 2.57 (0.35) 0.44

Dividend

Metric CDW CTSH Information Technology Services median
Dividend yield 1.05% 1.57% 1.21%
Payout ratio 0.29 0.26 0.00

Size

Metric CDW CTSH Information Technology Services median
Market cap 17.43b 25.59b 1.36b

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