CDW (NASDAQ:CDW) and Datasea (NASDAQ:DTSS) Head-To-Head Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Datasea	-4.80%	-88.98%	-37.33%
CDW	4.76%	50.66%	8.18%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Datasea	$71.62 million	0.13	-$5.09 million	($0.32)	-2.83
CDW	$22.42 billion	0.68	$1.07 billion	$8.09	14.61

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

Volatility and Risk

Datasea has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, CDW has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Datasea and CDW, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Datasea	1	0	0	0	1.00
CDW	0	5	2	1	2.50

CDW has a consensus target price of $160.43, suggesting a potential upside of 35.73%. Given CDW’s stronger consensus rating and higher possible upside, analysts plainly believe CDW is more favorable than Datasea.

Institutional and Insider Ownership

82.1% of Datasea shares are held by institutional investors. Comparatively, 93.2% of CDW shares are held by institutional investors. 50.7% of Datasea shares are held by company insiders. Comparatively, 0.8% of CDW shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

CDW beats Datasea on 14 of the 15 factors compared between the two stocks.

About Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

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.