CDW vs. SMCI: A Head-to-Head Stock Comparison
Here's a clear look at CDW and SMCI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CDW | SMCI |
|---|---|---|
| Company Name | CDW Corporation | Super Micro Computer, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Technology Hardware & Equipment | Technology Hardware & Equipment |
| GICS Industry | Electronic Equipment, Instruments & Components | Technology Hardware, Storage & Peripherals |
| GICS Sub-Industry | Technology Distributors | Technology Hardware, Storage & Peripherals |
| Market Capitalization | 16.71 billion USD | 16.39 billion USD |
| Currency | USD | USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | June 27, 2013 | March 29, 2007 |
| Security Type | Common Stock | Common Stock |
CDW's market capitalization stands at 16.71 billion USD, while SMCI's is 16.39 billion USD, indicating their market valuations are broadly comparable.
Historical Performance
This chart compares the performance of CDW and SMCI by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | CDW | SMCI |
|---|---|---|
| 5-Day Price Return | 2.22% | 17.53% |
| 13-Week Price Return | -2.95% | -9.40% |
| 26-Week Price Return | -17.44% | -53.49% |
| 52-Week Price Return | -14.62% | -17.60% |
| Month-to-Date Return | 7.06% | 19.85% |
| Year-to-Date Return | -4.88% | -6.76% |
| 10-Day Avg. Volume | 1.44M | 31.56M |
| 3-Month Avg. Volume | 1.75M | 33.36M |
| 3-Month Volatility | 35.95% | 98.77% |
| Beta | 1.01 | 1.75 |
SMCI carries a higher beta at 1.75, indicating it's more sensitive to market moves, while CDW (beta: 1.01) exhibits greater stability.
Profitability
Return on Equity (TTM)
CDW
42.94%
Electronic Equipment, Instruments & Components Industry
- Max
- 28.03%
- Q3
- 15.06%
- Median
- 9.16%
- Q1
- 5.88%
- Min
- -5.07%
CDW's Return on Equity of 42.94% is exceptionally high, placing it well beyond the typical range for the Electronic Equipment, Instruments & Components industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
SMCI
13.33%
Technology Hardware, Storage & Peripherals Industry
- Max
- 62.71%
- Q3
- 29.99%
- Median
- 10.15%
- Q1
- 6.04%
- Min
- -25.52%
SMCI's Return on Equity of 13.33% is on par with the norm for the Technology Hardware, Storage & Peripherals industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
CDW
4.76%
Electronic Equipment, Instruments & Components Industry
- Max
- 19.65%
- Q3
- 10.71%
- Median
- 8.53%
- Q1
- 3.13%
- Min
- -7.62%
CDW's Net Profit Margin of 4.76% is aligned with the median group of its peers in the Electronic Equipment, Instruments & Components industry. This indicates its ability to convert revenue into profit is typical for the sector.
SMCI
3.11%
Technology Hardware, Storage & Peripherals Industry
- Max
- 14.94%
- Q3
- 8.61%
- Median
- 5.19%
- Q1
- 2.51%
- Min
- -1.17%
SMCI's Net Profit Margin of 3.11% is aligned with the median group of its peers in the Technology Hardware, Storage & Peripherals industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
CDW
7.38%
Electronic Equipment, Instruments & Components Industry
- Max
- 25.41%
- Q3
- 15.80%
- Median
- 10.29%
- Q1
- 4.94%
- Min
- -10.16%
CDW's Operating Profit Margin of 7.38% is around the midpoint for the Electronic Equipment, Instruments & Components industry, indicating that its efficiency in managing core business operations is typical for the sector.
SMCI
3.57%
Technology Hardware, Storage & Peripherals Industry
- Max
- 15.64%
- Q3
- 10.89%
- Median
- 6.88%
- Q1
- 3.46%
- Min
- -1.25%
SMCI's Operating Profit Margin of 3.57% is around the midpoint for the Technology Hardware, Storage & Peripherals industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | CDW | SMCI |
|---|---|---|
| Return on Equity (TTM) | 42.94% | 13.33% |
| Return on Assets (TTM) | 6.94% | 5.20% |
| Net Profit Margin (TTM) | 4.76% | 3.11% |
| Operating Profit Margin (TTM) | 7.38% | 3.57% |
| Gross Profit Margin (TTM) | 21.73% | 8.02% |
Financial Strength
Current Ratio (MRQ)
CDW
1.18
Electronic Equipment, Instruments & Components Industry
- Max
- 4.97
- Q3
- 3.01
- Median
- 1.95
- Q1
- 1.51
- Min
- 0.68
CDW's Current Ratio of 1.18 falls into the lower quartile for the Electronic Equipment, Instruments & Components industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
SMCI
1.70
Technology Hardware, Storage & Peripherals Industry
- Max
- 2.21
- Q3
- 1.73
- Median
- 1.46
- Q1
- 1.12
- Min
- 0.73
SMCI's Current Ratio of 1.70 aligns with the median group of the Technology Hardware, Storage & Peripherals industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
CDW
2.16
Electronic Equipment, Instruments & Components Industry
- Max
- 1.19
- Q3
- 0.56
- Median
- 0.35
- Q1
- 0.12
- Min
- 0.00
With a Debt-to-Equity Ratio of 2.16, CDW operates with exceptionally high leverage compared to the Electronic Equipment, Instruments & Components industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
SMCI
0.70
Technology Hardware, Storage & Peripherals Industry
- Max
- 1.03
- Q3
- 0.79
- Median
- 0.32
- Q1
- 0.14
- Min
- 0.00
SMCI's Debt-to-Equity Ratio of 0.70 is typical for the Technology Hardware, Storage & Peripherals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
CDW
7.28
Electronic Equipment, Instruments & Components Industry
- Max
- 65.84
- Q3
- 30.90
- Median
- 12.18
- Q1
- 3.95
- Min
- -23.39
CDW's Interest Coverage Ratio of 7.28 is positioned comfortably within the norm for the Electronic Equipment, Instruments & Components industry, indicating a standard and healthy capacity to cover its interest payments.
SMCI
21.34
Technology Hardware, Storage & Peripherals Industry
- Max
- 25.10
- Q3
- 25.10
- Median
- 9.20
- Q1
- 4.08
- Min
- -23.93
SMCI's Interest Coverage Ratio of 21.34 is positioned comfortably within the norm for the Technology Hardware, Storage & Peripherals industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | CDW | SMCI |
|---|---|---|
| Current Ratio (MRQ) | 1.18 | 1.70 |
| Quick Ratio (MRQ) | 1.06 | 0.98 |
| Debt-to-Equity Ratio (MRQ) | 2.16 | 0.70 |
| Interest Coverage Ratio (TTM) | 7.28 | 21.34 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | CDW | SMCI |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 6.27% | 123.36% |
| Revenue Growth (TTM vs Prior YoY) | 6.79% | 34.76% |
| 3-Year Revenue CAGR | -1.90% | 61.71% |
| 5-Year Revenue CAGR | 3.96% | 45.76% |
EPS Growth
EPS Growth at a Glance
| Symbol | CDW | SMCI |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 8.79% | 14.52% |
| EPS Growth (TTM vs Prior YoY) | 1.33% | -42.62% |
| 3-Year EPS CAGR | -0.26% | 46.40% |
| 5-Year EPS CAGR | 8.21% | 59.92% |
Dividend
Dividend Yield (TTM)
CDW
1.98%
Electronic Equipment, Instruments & Components Industry
- Max
- 3.83%
- Q3
- 1.70%
- Median
- 0.72%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.98%, CDW offers a more attractive income stream than most of its peers in the Electronic Equipment, Instruments & Components industry, signaling a strong commitment to shareholder returns.
SMCI
0.00%
Technology Hardware, Storage & Peripherals Industry
- Max
- 6.20%
- Q3
- 3.28%
- Median
- 2.12%
- Q1
- 0.00%
- Min
- 0.00%
SMCI currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
CDW
30.81%
Electronic Equipment, Instruments & Components Industry
- Max
- 161.37%
- Q3
- 69.31%
- Median
- 31.05%
- Q1
- 0.00%
- Min
- 0.00%
CDW's Dividend Payout Ratio of 30.81% is within the typical range for the Electronic Equipment, Instruments & Components industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
SMCI
0.00%
Technology Hardware, Storage & Peripherals Industry
- Max
- 136.56%
- Q3
- 69.54%
- Median
- 43.52%
- Q1
- 0.00%
- Min
- 0.00%
SMCI has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | CDW | SMCI |
|---|---|---|
| Dividend Yield (TTM) | 1.98% | 0.00% |
| Dividend Payout Ratio (TTM) | 30.81% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
CDW
15.59
Electronic Equipment, Instruments & Components Industry
- Max
- 83.82
- Q3
- 46.73
- Median
- 32.97
- Q1
- 20.59
- Min
- 8.36
In the lower quartile for the Electronic Equipment, Instruments & Components industry, CDW's P/E Ratio of 15.59 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
SMCI
18.73
Technology Hardware, Storage & Peripherals Industry
- Max
- 19.29
- Q3
- 18.90
- Median
- 13.81
- Q1
- 11.99
- Min
- 7.02
SMCI's P/E Ratio of 18.73 is within the middle range for the Technology Hardware, Storage & Peripherals industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
CDW
0.74
Electronic Equipment, Instruments & Components Industry
- Max
- 8.13
- Q3
- 4.46
- Median
- 2.46
- Q1
- 1.43
- Min
- 0.25
In the lower quartile for the Electronic Equipment, Instruments & Components industry, CDW's P/S Ratio of 0.74 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
SMCI
0.58
Technology Hardware, Storage & Peripherals Industry
- Max
- 2.92
- Q3
- 1.56
- Median
- 0.88
- Q1
- 0.44
- Min
- 0.03
SMCI's P/S Ratio of 0.58 aligns with the market consensus for the Technology Hardware, Storage & Peripherals industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
CDW
6.80
Electronic Equipment, Instruments & Components Industry
- Max
- 8.40
- Q3
- 4.30
- Median
- 2.51
- Q1
- 1.51
- Min
- 0.50
CDW's P/B Ratio of 6.80 is in the upper tier for the Electronic Equipment, Instruments & Components industry. This indicates that investors are paying a premium relative to the company's net assets, a valuation that hinges on its ability to generate superior profits.
SMCI
2.50
Technology Hardware, Storage & Peripherals Industry
- Max
- 9.86
- Q3
- 6.30
- Median
- 2.08
- Q1
- 1.07
- Min
- 0.31
SMCI's P/B Ratio of 2.50 is within the conventional range for the Technology Hardware, Storage & Peripherals industry. This shows a balanced market view, where the stock's price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | CDW | SMCI |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 15.59 | 18.73 |
| Price-to-Sales Ratio (TTM) | 0.74 | 0.58 |
| Price-to-Book Ratio (MRQ) | 6.80 | 2.50 |
| Price-to-Free Cash Flow Ratio (TTM) | 15.29 | 9.08 |