Head-To-Head Review: Unisys (NYSE:UIS) and CDW (NASDAQ:CDW)

CDW (NASDAQ:CDW) and Unisys (NYSE:UIS) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

93.2% of CDW shares are held by institutional investors. Comparatively, 86.9% of Unisys shares are held by institutional investors. 0.9% of CDW shares are held by insiders. Comparatively, 7.0% of Unisys shares are held by 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.

Volatility and Risk

CDW has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Unisys has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Profitability

This table compares CDW and Unisys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CDW	4.92%	53.63%	8.58%
Unisys	-4.16%	-12.55%	1.56%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CDW and Unisys, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CDW	0	5	2	0	2.29
Unisys	1	2	2	0	2.20

CDW presently has a consensus target price of $202.00, indicating a potential upside of 26.83%. Unisys has a consensus target price of $6.38, indicating a potential upside of 62.84%. Given Unisys’ higher probable upside, analysts plainly believe Unisys is more favorable than CDW.

Valuation & Earnings

This table compares CDW and Unisys”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CDW	$21.00 billion	0.99	$1.08 billion	$8.05	19.79
Unisys	$2.01 billion	0.14	-$193.40 million	($1.18)	-3.32

CDW has higher revenue and earnings than Unisys. Unisys 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 Unisys on 10 of the 13 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 Unisys

Unisys Corporation, together with its subsidiaries, operates as an information technology solutions company in the United States and internationally. It operates in three segments: Digital Workplace Solutions (DWS); Cloud, Applications & Infrastructure Solutions (CA&I); and Enterprise Computing Solutions. The DWS segment provides advice and execution related to modern workplace solutions, such as communication and collaboration, intelligent workplace services, unified experience management, and modern device management; and traditional workplace solutions, including traditional service desk, device management and field services. The CA&I segment offers cloud management, hybrid infrastructure, modern applications, data and artificial intelligence, and cyber security; and design, implementation, monitoring, automation, and management of dedicated on-premises or hosted infrastructure. The Enterprise Computing Solutions segment provides license and support solutions; specialized services, next-generation computing, and industry solutions; and other solutions that provides various micro-market and business process solutions. The company also offers enterprise software and technology products, including Unisys InteliServe, PowerSuite, Unisys Logistics Optimization, CloudForte, ClearPath Forward, and Unisys Stealth. It serves its products in the travel and transportation, financial services, and healthcare industries. Unisys Corporation was founded in 1873 and is based in Blue Bell, Pennsylvania.