Financial Comparison: CDW (NASDAQ:CDW) versus Fujitsu (OTCMKTS:FJTSY)

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for CDW and Fujitsu, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CDW	0	3	4	0	2.57
Fujitsu	0	0	0	0	N/A

CDW presently has a consensus price target of $255.00, suggesting a potential upside of 17.51%. Given CDW’s higher probable upside, equities research analysts plainly believe CDW is more favorable than Fujitsu.

Earnings and Valuation

This table compares CDW and Fujitsu”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CDW	$20.94 billion	1.39	$1.10 billion	$8.01	27.09
Fujitsu	$26.02 billion	1.41	$1.76 billion	$0.50	39.06

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

Risk and Volatility

CDW has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Fujitsu has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Dividends

CDW pays an annual dividend of $2.48 per share and has a dividend yield of 1.1%. Fujitsu pays an annual dividend of $0.09 per share and has a dividend yield of 0.5%. CDW pays out 31.0% of its earnings in the form of a dividend. Fujitsu pays out 18.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Insider and Institutional Ownership

93.2% of CDW shares are owned by institutional investors. Comparatively, 0.1% of Fujitsu shares are owned by institutional investors. 0.9% of CDW shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CDW	5.29%	62.22%	9.59%
Fujitsu	7.22%	14.72%	8.10%

Summary

CDW beats Fujitsu on 9 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 Fujitsu

Fujitsu Limited operates as an information and communication technology company in Japan and internationally. The company operates through three segments: Technology Solutions, Ubiquitous Solutions, and Device Solutions. The company offers multi cloud and hybrid IT services; assessment and consultative services; SAP landscape transformation services; new workplace; datacentre products comprising integrated systems, storage solutions, servers, network switches, and infrastructure management; workplace products including notebooks, tablet PC’s, desktop PC’s, workstations, thin clients, displays, and peripheral devices; consumption based IT services; installation and implementation services; and hardware, software, and infrastructure support services, as well as electronic devices, air conditioning products, and network solutions. It also provides cyber security solutions, including cyber security consulting, managed security servies, and security operation and advanced threat centers; internet of things, artificial intelligence platform and solutions; and software products comprising FUJITSU Software Infrastructure Manager and FUJITSU Software ServerView Suite. Further, the company offers electronic components, such as semiconductor packages and batteries. It serves automotive, manufacturing, retail, financial services, transport, telecommunications, healthcare, and energy and utilities industries; the public sectors; and services providers. The company was founded in 1923 and is headquartered in Tokyo, Japan.