CDW (NASDAQ:CDW – Get Free Report) and Evolv Technologies (NASDAQ:EVLV – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.
Profitability
This table compares CDW and Evolv Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CDW | 4.70% | 49.67% | 8.02% |
| Evolv Technologies | -22.75% | -33.53% | -12.22% |
Risk and Volatility
CDW has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Evolv Technologies has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CDW | 0 | 5 | 2 | 1 | 2.50 |
| Evolv Technologies | 1 | 0 | 3 | 2 | 3.00 |
CDW presently has a consensus target price of $142.14, indicating a potential upside of 39.26%. Evolv Technologies has a consensus target price of $9.13, indicating a potential upside of 60.09%. Given Evolv Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Evolv Technologies is more favorable than CDW.
Insider and Institutional Ownership
93.2% of CDW shares are held by institutional investors. Comparatively, 66.7% of Evolv Technologies shares are held by institutional investors. 0.8% of CDW shares are held by company insiders. Comparatively, 11.3% of Evolv Technologies shares are held by company 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.
Earnings and Valuation
This table compares CDW and Evolv Technologies”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CDW | $22.42 billion | 0.58 | $1.07 billion | $8.22 | 12.42 |
| Evolv Technologies | $145.90 million | 7.03 | -$33.14 million | ($0.23) | -24.78 |
CDW has higher revenue and earnings than Evolv Technologies. Evolv Technologies 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 Evolv Technologies on 8 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 Evolv Technologies
Evolv Technologies Holdings, Inc. provides artificial intelligence (AI)-based weapons detection for security screening in the United States and internationally. Its products include Evolv Express, a touchless security screening system designed to detect firearms, improvised explosive devices, and tactical knives; and Evolv Insights that provides self-serve access, insights regarding visitor flow and arrival curves, location specific performance, system detection performance, and alarm statistics. The company was founded in 2013 and is headquartered in Waltham, Massachusetts.
Receive News & Ratings for CDW Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CDW and related companies with MarketBeat.com's FREE daily email newsletter.
