AMAT vs. CDW: A Head-to-Head Stock Comparison

Company Overview

AMAT’s market capitalization of 140.44 billion USD is substantially larger than CDW’s 23.01 billion USD, indicating a significant difference in their market valuations.

AMAT’s beta of 1.66 points to significantly higher volatility compared to CDW (beta: 0.94), suggesting AMAT has greater potential for both gains and losses relative to market movements.

Performance Comparison

This chart compares the performance of AMAT and CDW over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of AMAT and CDW. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• AMAT’s Forward PEG ratio of 3.13 and CDW’s Forward PEG ratio of 3.79 are both considered very high. For AMAT, this elevated ratio implies its stock price may incorporate highly optimistic growth assumptions that could be challenging to realize. CDW’s very high PEG also suggests its valuation is quite rich relative to its expected earnings growth, potentially indicating overvaluation.

Dividend Comparison

CDW provides a dividend yield of 1.43%, which is significantly higher than AMAT’s 0.95%, highlighting its commitment to more generous shareholder payouts.

Financial Strength Metrics Comparison

This section evaluates the financial strength of AMAT and CDW. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• CDW’s Debt-to-Equity (D/E) ratio of 2.58 is very high. This signals a considerable debt load relative to equity, potentially heightening its risk during economic downturns or if interest rates rise, and may affect its financial resilience.