Head to Head Analysis: CDW (NASDAQ:CDW) & Grid Dynamics (NASDAQ:GDYN)

CDW (NASDAQ:CDW) and Grid Dynamics (NASDAQ:GDYN) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Earnings & Valuation

This table compares CDW and Grid Dynamics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CDW	$21.00 billion	0.80	$1.08 billion	$7.92	16.33
Grid Dynamics	$350.57 million	2.13	$4.04 million	$0.15	58.67

CDW has higher revenue and earnings than Grid Dynamics. CDW is trading at a lower price-to-earnings ratio than Grid Dynamics, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

93.2% of CDW shares are owned by institutional investors. Comparatively, 71.2% of Grid Dynamics shares are owned by institutional investors. 0.8% of CDW shares are owned by insiders. Comparatively, 6.5% of Grid Dynamics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for CDW and Grid Dynamics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CDW	0	5	2	1	2.50
Grid Dynamics	0	2	3	0	2.60

CDW currently has a consensus price target of $171.00, suggesting a potential upside of 32.24%. Grid Dynamics has a consensus price target of $11.33, suggesting a potential upside of 28.79%. Given CDW’s higher possible upside, equities research analysts plainly believe CDW is more favorable than Grid Dynamics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CDW	4.76%	51.89%	8.35%
Grid Dynamics	3.42%	1.74%	1.52%

Risk and Volatility

CDW has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Grid Dynamics has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Summary

CDW beats Grid Dynamics on 10 of the 15 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 Grid Dynamics

Grid Dynamics Holdings, Inc., together with its subsidiaries, provides technology consulting, platform and product engineering, and analytics services in North America, Europe, and internationally. It offers cloud platform and product engineering services, such as architecting, designing, and building scalable and secure cloud-based platforms and business applications; and AI/machine learning and data platform engineering services that build platforms to facilitate batch and streaming data ingestion, quality governance, orchestration, semantic modeling, observability, and analysis at scale. The company provides digital engagement services, including digital ecosystem design and implementation; and supply chain, Internet of Thing, and advanced manufacturing, which focuses on transforming traditional operations into smart and connected ecosystems. It serves customers that operate in the tech, media, telecommunications, retail, consumer packaged goods, manufacturing, and finance industries. The company was formerly known as ChaSerg Technology Acquisition Corp. and changed its name to Grid Dynamics Holdings, Inc. Grid Dynamics Holdings, Inc. was founded in 2006 and is headquartered in San Ramon, California.