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 $33.4B against $19.8B — 1.7× the size. Fiserv, Inc. has negative trailing earnings, so its P/E is not meaningful; CDW Corporation trades at 18.6×. CDW Corporation grew revenue faster over the last twelve months: 10.9% against −1.71%. CDW Corporation has the higher net margin (4.48% vs −18.9%) and the higher return on invested capital (13.1% vs −2.98%). Across the 21 metrics below, CDW Corporation leads on 12 and Fiserv, Inc. on 9.

Valuation

Metric CDW FISV Information Technology Services median
P/E 18.55 n/m 17.60
P/S 0.81 1.61 1.16
P/B 8.18 1,395.63 1.93
Price to free cash flow 21.39 10.61 13.52
EV/EBITDA 12.63 7.52 9.79
EV/Sales 1.04 2.89 1.35
Earnings yield 5.39% (11.80%) 2.99%
Free cash flow yield 4.67% 9.43% 0.07%

Profitability

Metric CDW FISV Information Technology Services median
Gross margin 21.00% 53.91% 30.04%
Operating margin 7.03% (10.91%) 1.67%
Net margin 4.48% (18.90%) 0.79%
Free cash flow margin 3.81% 15.18% 0.00%
Return on equity 42.47% (31.25%) 0.00%
Return on assets 6.32% (5.18%) 0.00%
Return on invested capital 13.11% (2.98%) 0.00%

Growth

Metric CDW FISV Information Technology Services median
Revenue growth (TTM) 10.94% (1.71%) 4.85%
EPS growth (last fiscal year) 1.38% 17.84% 3.57%
Revenue growth, 5-year CAGR 3.96% 7.37% 6.93%
Net income growth, 5-year CAGR 6.23% 29.43% 0.00%

Health

Metric CDW FISV Information Technology Services median
Debt to equity 2.70 1.28 0.31
Current ratio 1.26 1.04 1.70
Net debt to EBITDA 2.57 3.12 0.55

Dividend

Metric CDW FISV Information Technology Services median
Dividend yield 1.58% — 1.95%
Payout ratio 0.29 — 0.29

Size

Metric CDW FISV Information Technology Services median
Market cap 19.80b 33.36b 1.11b

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