CDW (NASDAQ:CDW) and BWX Technologies (NYSE:BWXT) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.
Profitability
This table compares CDW and BWX Technologies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
CDW | 4.08% | 88.43% | 10.72% |
BWX Technologies | 13.27% | 61.50% | 14.39% |
Volatility & Risk
CDW has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, BWX Technologies has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for CDW and BWX Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
CDW | 1 | 1 | 5 | 0 | 2.57 |
BWX Technologies | 0 | 1 | 3 | 0 | 2.75 |
CDW currently has a consensus target price of $151.4286, suggesting a potential downside of 16.22%. BWX Technologies has a consensus target price of $72.75, suggesting a potential upside of 8.02%. Given BWX Technologies' stronger consensus rating and higher probable upside, analysts plainly believe BWX Technologies is more favorable than CDW.
Dividends
CDW pays an annual dividend of $1.60 per share and has a dividend yield of 0.9%. BWX Technologies pays an annual dividend of $0.84 per share and has a dividend yield of 1.2%. CDW pays out 26.6% of its earnings in the form of a dividend. BWX Technologies pays out 32.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CDW has raised its dividend for 7 consecutive years and BWX Technologies has raised its dividend for 1 consecutive years.
Insider & Institutional Ownership
91.4% of CDW shares are held by institutional investors. Comparatively, 96.1% of BWX Technologies shares are held by institutional investors. 1.3% of CDW shares are held by insiders. Comparatively, 0.5% of BWX Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares CDW and BWX Technologies' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
CDW | $18.03 billion | 1.41 | $736.80 million | $6.02 | 30.02 |
BWX Technologies | $1.89 billion | 3.38 | $244.12 million | $2.62 | 25.71 |
CDW has higher revenue and earnings than BWX Technologies. BWX Technologies is trading at a lower price-to-earnings ratio than CDW, indicating that it is currently the more affordable of the two stocks.
Summary
CDW beats BWX Technologies on 10 of the 17 factors compared between the two stocks.