In today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate companies. In this article, we will perform a comprehensive industry comparison, evaluating CDW (NASDAQ:CDW) against its key competitors in the Electronic Equipment, Instruments & Components industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.
CDW Background
CDW Corp is a value-added reseller operating in the U.S. (95% of sales) and Canada (5%). The company has more than 100,000 products on its line of cards that range from notebooks to data center software. Roughly half of CDW's revenue comes from midsize and large businesses, with the remaining from small businesses, government agencies, education institutions, and health-care organizations.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| CDW Corp | 26.53 | 15.73 | 1.33 | 18.43% | $0.54 | $1.23 | -9.45% |
| TD Synnex Corp | 14.18 | 1.06 | 0.16 | 1.66% | $0.34 | $0.97 | -9.09% |
| Arrow Electronics Inc | 6.66 | 1.18 | 0.20 | 3.59% | $0.38 | $0.98 | -13.59% |
| Insight Enterprises Inc | 21.97 | 3.19 | 0.62 | 3.77% | $0.11 | $0.41 | -10.58% |
| Avnet Inc | 5.53 | 0.89 | 0.17 | 4.37% | $0.38 | $0.75 | -6.14% |
| ePlus Inc | 12.98 | 2.09 | 0.77 | 3.94% | $0.05 | $0.14 | 19.02% |
| PC Connection Inc | 20.22 | 1.92 | 0.55 | 3.17% | $0.04 | $0.13 | -10.65% |
| ScanSource Inc | 10.87 | 0.93 | 0.23 | 1.7% | $0.03 | $0.11 | -7.15% |
| Climb Global Solutions Inc | 18.39 | 3.29 | 0.64 | 3.43% | $0.0 | $0.01 | 2.88% |
| Richardson Electronics Ltd | 11.51 | 1.20 | 0.80 | 0.77% | $0.0 | $0.02 | -22.17% |
| Average | 13.59 | 1.75 | 0.46 | 2.93% | $0.15 | $0.39 | -6.39% |
By conducting an in-depth analysis of CDW, we can identify the following trends:
Debt To Equity Ratio
The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When assessing CDW against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:
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CDW has a relatively higher debt-to-equity ratio of 3.24 compared to its top 4 peers.
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This could indicate a higher financial risk as the company is more reliant on borrowed funds, and investors may perceive it as a potential concern.
Key Takeaways
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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