CDW Corporation (CDW) vs International Business Machines Corporation (IBM)

CDW Corporation and International Business Machines Corporation are both Information Technology Services companies. International Business Machines Corporation is the larger, with a market value of $214.4B against $17.4B — 12.3× the size. CDW Corporation trades at the lower P/E: 16.2× against 19.7×. International Business Machines Corporation grew revenue faster over the last twelve months: 7.90% against 7.41%. International Business Machines Corporation has the higher net margin (15.5% vs 4.60%) and the lower return on invested capital (7.86% vs 13.3%). Both pay a dividend; International Business Machines Corporation yields more (3.70% vs 1.05%). Across the 23 metrics below, International Business Machines Corporation leads on 14 and CDW Corporation on 9.

Valuation

Metric CDW IBM Information Technology Services median
P/E 16.22 19.70 14.63
P/S 0.73 3.07 1.13
P/B 7.04 6.14 2.10
Price to free cash flow 19.99 15.35 10.11
EV/EBITDA 11.46 16.31 8.56
EV/Sales 0.96 3.85 1.20
Earnings yield 6.17% 5.08% 4.56%
Free cash flow yield 5.00% 6.52% 4.37%

Profitability

Metric CDW IBM Information Technology Services median
Gross margin 21.36% 58.10% 31.05%
Operating margin 7.14% 16.08% 3.30%
Net margin 4.60% 15.52% 2.09%
Free cash flow margin 3.66% 20.02% 0.00%
Return on equity 44.01% 34.52% 4.12%
Return on assets 6.64% 7.13% 0.61%
Return on invested capital 13.28% 7.86% 0.57%

Growth

Metric CDW IBM Information Technology Services median
Revenue growth (TTM) 7.41% 7.90% 7.12%
EPS growth (last fiscal year) 1.38% 73.72% —
Revenue growth, 5-year CAGR 3.96% 4.12% 7.71%
Net income growth, 5-year CAGR 6.23% 13.64% 0.00%

Health

Metric CDW IBM Information Technology Services median
Debt to equity 2.38 1.79 0.45
Current ratio 1.17 0.79 1.66
Net debt to EBITDA 2.57 2.95 0.44

Dividend

Metric CDW IBM Information Technology Services median
Dividend yield 1.05% 3.70% 1.21%
Payout ratio 0.29 2.81 0.00

Size

Metric CDW IBM Information Technology Services median
Market cap 17.43b 214.41b 1.36b

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