CDW (CDW Corp) vs S&P 500 Comparison

CDW

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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CDW

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

CDW

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

CDW

SNX

000938

ARW

NSIT

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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CDW Corp
Glance View

Economic Moat

None

Market Cap

24.3B USD

Industry

Electrical Equipment

CDW Corp., a formidable player in the realm of information technology solutions, began its journey in 1984 as a small enterprise, initially dealing with tech supplies through catalogs. Over the decades, it has burgeoned into a comprehensive provider of IT solutions and services catering primarily to business, government, education, and healthcare sectors. What sets CDW apart is its ability to adapt and evolve in response to the dynamic tech landscape. Clients are drawn to CDW's extensive portfolio, which not only includes hardware and software but also encompasses strategic consulting and implementation services. This ensures that organizations not only purchase technology but also leverage it effectively to meet their business goals. CDW makes its money by operating as a trusted advisor and intermediary between leading tech vendors and end-users. The company thrives on its relationships with both large and niche technology product makers, including tech giants like Microsoft, Cisco, and Apple. CDW earns margins through the sale of products and services, which include not only hardware and software but also value-added solutions like cloud computing, cybersecurity, and data center optimization. By providing tailored IT solutions and responsive customer support, CDW strengthens its appeal to organizations needing efficient and effective tech ecosystems. Furthermore, CDW's focus extends beyond mere transactions, as it actively builds long-term partnerships, ensuring continuous revenue streams through managed services and subscription-based models.

View CDW Analysis

CDW Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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ZA	D	Datatec Ltd JSE:DTC	Select
US		TD Synnex Corp NYSE:SNX	Select
CN		Unisplendour Corp Ltd SZSE:000938	Select
US		Arrow Electronics Inc NYSE:ARW	Select
US		Insight Enterprises Inc NASDAQ:NSIT	Select
US		Avnet Inc NASDAQ:AVT	Select
TW		WT Microelectronics Co Ltd TWSE:3036	Select
TW		Synnex Technology International Corp TWSE:2347	Select
TW		WPG Holdings Ltd TWSE:3702	Select
JP		Canon Marketing Japan Inc TSE:8060	Select

ZA	D	Datatec Ltd JSE:DTC	Add
US		TD Synnex Corp NYSE:SNX	Add
CN		Unisplendour Corp Ltd SZSE:000938	Add
US		Arrow Electronics Inc NYSE:ARW	Add
US		Insight Enterprises Inc NASDAQ:NSIT	Add
US		Avnet Inc NASDAQ:AVT	Add
TW		WT Microelectronics Co Ltd TWSE:3036	Add
TW		Synnex Technology International Corp TWSE:2347	Add
TW		WPG Holdings Ltd TWSE:3702	Add
JP		Canon Marketing Japan Inc TSE:8060	Add

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CDW

vs

S&P 500

Stocks Performance
CDW vs S&P 500

Performance Gap
CDW vs S&P 500

Performance By Year
CDW vs S&P 500

Competitors Performance
CDW Corp vs Peers

CDW Corp
Glance View

Company

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CDW vs S&P 500

Stocks Performance CDW vs S&P 500

Performance Gap CDW vs S&P 500

Performance By Year CDW vs S&P 500

Competitors Performance CDW Corp vs Peers

CDW Corp Glance View

Company

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Stocks

CDW

vs

S&P 500

Stocks Performance
CDW vs S&P 500

Performance Gap
CDW vs S&P 500

Performance By Year
CDW vs S&P 500

Competitors Performance
CDW Corp vs Peers

CDW Corp
Glance View