CDW (NASDAQ:CDW – Get Free Report) and RDE (NASDAQ:GIFT – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.
Profitability
This table compares CDW and RDE’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
CDW | 5.33% | 58.31% | 9.31% |
RDE | N/A | -62.87% | -38.24% |
Volatility & Risk
CDW has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, RDE has a beta of -0.72, indicating that its share price is 172% less volatile than the S&P 500.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
CDW | 0 | 4 | 5 | 0 | 2.56 |
RDE | 0 | 0 | 1 | 0 | 3.00 |
CDW presently has a consensus price target of $242.67, indicating a potential upside of 21.42%. RDE has a consensus price target of $4.00, indicating a potential upside of 257.14%. Given RDE’s stronger consensus rating and higher possible upside, analysts plainly believe RDE is more favorable than CDW.
Insider & Institutional Ownership
93.2% of CDW shares are owned by institutional investors. 0.9% of CDW shares are owned by company insiders. Comparatively, 20.5% of RDE shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares CDW and RDE”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
CDW | $21.38 billion | 1.25 | $1.10 billion | $8.18 | 24.43 |
RDE | $97.01 million | 0.30 | N/A | N/A | N/A |
CDW has higher revenue and earnings than RDE.
Summary
CDW beats RDE on 8 of the 11 factors compared between the two stocks.
About CDW
CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. It also provides hardware products comprising notebooks/mobile devices, tablets, network communications, desktop computers, collaboration, data storage and servers, and others; and software products, such as cloud solutions, software assurance, application suites, security, virtualization, operating systems, and network management. In addition, the company offers advisory and design, software development, implementation, managed, professional, configuration, partner, and telecom services, as well as warranties; delivers and manages mission critical software, systems, and network solutions; and implementation and installation, and repair services to its customers through various third-party service providers. It serves government, education, and healthcare customers; and small, medium, and large business customers. CDW Corporation was founded in 1984 and is headquartered in Vernon Hills, Illinois.
About RDE
RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.
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