CDW (NASDAQ:CDW – Get Free Report) and Kimball Electronics (NASDAQ:KE – Get Free Report) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.
Institutional and Insider Ownership
93.2% of CDW shares are held by institutional investors. Comparatively, 76.0% of Kimball Electronics shares are held by institutional investors. 0.8% of CDW shares are held by insiders. Comparatively, 3.5% of Kimball Electronics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares CDW and Kimball Electronics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CDW | $22.42 billion | 0.94 | $1.07 billion | $8.57 | 19.76 |
| Kimball Electronics | $1.43 billion | 0.33 | $27.96 million | $0.84 | 23.15 |
CDW has higher revenue and earnings than Kimball Electronics. CDW is trading at a lower price-to-earnings ratio than Kimball Electronics, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
CDW has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Kimball Electronics has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for CDW and Kimball Electronics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CDW | 0 | 3 | 5 | 1 | 2.78 |
| Kimball Electronics | 0 | 3 | 0 | 0 | 2.00 |
CDW presently has a consensus price target of $167.38, suggesting a potential downside of 1.17%. Given CDW’s stronger consensus rating and higher probable upside, analysts plainly believe CDW is more favorable than Kimball Electronics.
Profitability
This table compares CDW and Kimball Electronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CDW | 4.48% | 52.23% | 7.71% |
| Kimball Electronics | 1.41% | 3.09% | 1.59% |
Summary
CDW beats Kimball Electronics on 12 of the 15 factors compared between the two stocks.
About CDW
CDW Corporation is a provider of information technology products and services to businesses, government agencies, educational institutions and healthcare organizations. The company helps customers select, purchase, implement and manage technology solutions. Its offerings include computers and other hardware, software, cloud services, cybersecurity, networking, data center infrastructure and collaboration tools. CDW also provides consulting, integration and ongoing technology support, helping customers plan and operate their IT environments.
About Kimball Electronics
Kimball Electronics, Inc. is a contract manufacturer that provides engineering, supply chain, and manufacturing services for electronic and other products. Its work includes product design and development, assembly, testing, and related support services. The company serves customers in markets including medical, automotive, industrial, and public safety. Its services help customers bring products to market and manage production across their life cycles. Kimball Electronics traces its roots to electronics manufacturing operations established by Kimball International in 1961 and became an independent publicly traded company in 2014.
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