CDW Corporation (CDW) vs Fiserv, Inc. (FISV)

CDW Corporation and Fiserv, Inc. are both Information Technology Services companies. Fiserv, Inc. is the larger, with a market value of $24.5B against $17.4B — 1.4× the size. Fiserv, Inc. trades at the lower P/E: 8.9× against 16.2×. CDW Corporation grew revenue faster over the last twelve months: 7.41% against −1.17%. Fiserv, Inc. has the higher net margin (13.4% vs 4.60%) and the lower return on invested capital (5.38% vs 13.3%). Across the 22 metrics below, Fiserv, Inc. leads on 14 and CDW Corporation on 8.

Valuation

Metric CDW FISV Information Technology Services median
P/E 16.22 8.92 14.63
P/S 0.73 1.19 1.13
P/B 7.04 0.92 2.10
Price to free cash flow 19.99 6.02 10.11
EV/EBITDA 11.46 6.52 8.56
EV/Sales 0.96 2.49 1.20
Earnings yield 6.17% 11.21% 4.56%
Free cash flow yield 5.00% 16.61% 4.37%

Profitability

Metric CDW FISV Information Technology Services median
Gross margin 21.36% 55.37% 31.05%
Operating margin 7.14% 22.33% 3.30%
Net margin 4.60% 13.42% 2.09%
Free cash flow margin 3.66% 19.71% 0.00%
Return on equity 44.01% 10.63% 4.12%
Return on assets 6.64% 3.45% 0.61%
Return on invested capital 13.28% 5.38% 0.57%

Growth

Metric CDW FISV Information Technology Services median
Revenue growth (TTM) 7.41% (1.17%) 7.12%
EPS growth (last fiscal year) 1.38% 17.84% —
Revenue growth, 5-year CAGR 3.96% 7.37% 7.71%
Net income growth, 5-year CAGR 6.23% 29.43% 0.00%

Health

Metric CDW FISV Information Technology Services median
Debt to equity 2.38 1.04 0.45
Current ratio 1.17 1.04 1.66
Net debt to EBITDA 2.57 3.12 0.44

Dividend

Metric CDW FISV Information Technology Services median
Dividend yield 1.05% — 1.21%
Payout ratio 0.29 0.00 0.00

Size

Metric CDW FISV Information Technology Services median
Market cap 17.43b 24.46b 1.36b

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