In today’s fast-evolving technology landscape, choosing the right company for investment requires careful comparison. CDW Corporation and CrowdStrike Holdings, Inc. operate within overlapping IT sectors, focusing on enterprise solutions and cybersecurity innovation. While CDW offers comprehensive IT hardware and services, CrowdStrike specializes in cloud-based security software. This article will analyze their strengths and strategies to help you decide which company aligns better with your investment goals.
Table of contents
Companies Overview
I will begin the comparison between CDW Corporation and CrowdStrike Holdings, Inc. by providing an overview of these two companies and their main differences.
CDW Corporation Overview
CDW Corporation delivers IT solutions across the US, UK, and Canada, serving government, education, healthcare, and businesses of various sizes. Founded in 1984, CDW operates through corporate, small business, and public segments, offering a mix of hardware, software, and integrated IT services including cloud, networking, and security. It employs about 15,100 people and is headquartered in Vernon Hills, Illinois.
CrowdStrike Holdings, Inc. Overview
CrowdStrike is a cybersecurity company focused on cloud-delivered protection for endpoints, cloud workloads, identity, and data. Established in 2011 and based in Austin, Texas, it primarily sells subscription services for its Falcon platform globally. CrowdStrike provides threat intelligence, managed security, Zero Trust identity protection, and IT operations management, employing approximately 10,100 people.
Key similarities and differences
Both companies operate in the technology sector but differ in focus: CDW emphasizes IT hardware and integrated solutions, while CrowdStrike specializes in cloud-based cybersecurity software and services. CDW serves a broader market including public sectors and various business sizes, whereas CrowdStrike targets security subscriptions worldwide. Each uses a direct sales approach, but their product portfolios and service models reflect distinct technology segments.
Income Statement Comparison
The table below presents a side-by-side comparison of the latest fiscal year income statement metrics for CDW Corporation and CrowdStrike Holdings, Inc., highlighting key financial figures for 2024 and 2025 respectively.
| Metric | CDW Corporation (2024) | CrowdStrike Holdings, Inc. (2025) |
|---|---|---|
| Market Cap | 17.3B | 113.0B |
| Revenue | 21.0B | 3.95B |
| EBITDA | 1.93B | 295M |
| EBIT | 1.65B | 81M |
| Net Income | 1.08B | -19.3M |
| EPS | 8.06 | -0.0787 |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
CDW Corporation
CDW’s revenue showed a moderate 13.7% growth over 2020-2024 but declined by 1.77% in the latest year. Net income increased 36.7% overall, though it fell slightly last year, mirroring a 0.65% net margin contraction. The 2024 gross margin remained stable at 21.9%, while EBIT margin held neutral at 7.9%. Despite recent dips, CDW sustained favorable net margin and interest expense metrics.
CrowdStrike Holdings, Inc.
CrowdStrike’s revenue surged 352% from 2021 to 2025, with a notable 29.4% increase in the latest year. Net income grew 79.2% overall but turned negative recently, causing a -0.49% net margin in 2025. Gross margin stayed strong at 74.9%, yet EBIT margin remained low at 2.0%. Operating expenses grew rapidly, pressuring profitability despite top-line momentum.
Which one has the stronger fundamentals?
Both companies show favorable income statement trends overall, but CDW maintains consistent profitability with positive net margins and controlled interest expenses. CrowdStrike exhibits rapid revenue growth but struggles with recent profitability and margin compression due to rising operating costs. CDW’s steadier margins contrast with CrowdStrike’s volatility, reflecting differing risk profiles and earnings stability.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for CDW Corporation and CrowdStrike Holdings, Inc., based on their most recent fiscal year data.
| Ratios | CDW Corporation (2024) | CrowdStrike Holdings, Inc. (2025) |
|---|---|---|
| ROE | 45.8% | -0.59% |
| ROIC | 13.1% | 0.70% |
| P/E | 21.6 | -5056 (negative earnings) |
| P/B | 9.90 | 29.7 |
| Current Ratio | 1.35 | 1.67 |
| Quick Ratio | 1.24 | 1.67 |
| D/E | 2.55 | 0.24 |
| Debt-to-Assets | 40.8% | 9.1% |
| Interest Coverage | 7.70 | -4.58 (negative) |
| Asset Turnover | 1.43 | 0.45 |
| Fixed Asset Turnover | 67.3 | 4.76 |
| Payout Ratio | 30.8% | 0% (no dividend) |
| Dividend Yield | 1.43% | 0% |
Interpretation of the Ratios
CDW Corporation
CDW shows generally favorable financial ratios, including a strong return on equity (45.81%) and return on invested capital (13.13%), alongside a solid interest coverage ratio of 7.69. However, its price-to-book ratio is high at 9.9, posing potential valuation concerns. The company pays dividends with a 1.43% yield, indicating steady shareholder returns supported by a balanced payout approach.
CrowdStrike Holdings, Inc.
CrowdStrike’s ratios are mixed, with unfavorable net margin (-0.49%) and return on equity (-0.59%), reflecting ongoing challenges in profitability. Its debt levels and liquidity ratios are favorable, with a low debt-to-equity of 0.24 and a current ratio of 1.67. The company does not pay dividends, likely due to reinvestment in growth and high R&D expenses, consistent with its high-growth profile.
Which one has the best ratios?
CDW presents a slightly favorable overall ratio profile with strong profitability and coverage metrics, despite some valuation concerns. CrowdStrike displays a neutral profile, hindered by negative profitability ratios but supported by solid liquidity and capital structure. Based on this comparison, CDW’s ratios appear more robust and balanced relative to CrowdStrike’s.
Strategic Positioning
This section compares the strategic positioning of CDW Corporation and CrowdStrike Holdings, Inc. in terms of market position, key segments, and exposure to technological disruption:
CDW Corporation
- Established IT solutions provider with strong presence in hardware and services; faces typical competitive pressure in IT services.
- Diversified revenue from hardware, software products, and services across corporate, public, and small business segments.
- Moderate exposure to technological disruption with hybrid IT solutions integrating cloud and on-premise systems.
CrowdStrike Holdings, Inc.
- Cloud-focused cybersecurity firm with rapidly growing market presence in software infrastructure, facing intense competition.
- Concentrated revenue primarily from subscription-based cloud security services and professional services globally.
- High exposure to technological disruption through cloud-delivered endpoint and identity protection services.
CDW Corporation vs CrowdStrike Holdings, Inc. Positioning
CDW operates a diversified business model spanning hardware, software, and services targeting various market segments, providing stability but potential complexity. CrowdStrike focuses on cloud-based cybersecurity subscriptions, benefiting from growth but with higher reliance on a narrower segment.
Which has the best competitive advantage?
CDW shows a slightly favorable moat by creating value despite declining profitability, indicating some competitive strength. CrowdStrike has a slightly unfavorable moat, shedding value but improving profitability, reflecting growing yet currently weaker competitive advantage.
Stock Comparison
The stock price chart illustrates significant and contrasting price movements over the past 12 months, with CDW Corporation experiencing a marked decline while CrowdStrike Holdings, Inc. shows robust gains despite recent downward pressure.
Trend Analysis
CDW Corporation’s stock trend over the past year is bearish, with a -45.7% price change and decelerating decline. The stock showed high volatility, with a standard deviation of 33.71, peaking at 255.78 and bottoming at 133.16.
CrowdStrike Holdings, Inc. exhibited a bullish trend over the same period, gaining 37.72%, though with deceleration and significant volatility (std deviation 80.21). The stock’s high was 543.01 and low 217.89.
Comparing the two, CrowdStrike delivered the highest market performance, with a positive 37.72% change versus CDW’s -45.7% loss over the past year.
Target Prices
Analysts present a bullish consensus on CDW Corporation and CrowdStrike Holdings, Inc., indicating potential upside from current prices.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| CDW Corporation | 190 | 148 | 175 |
| CrowdStrike Holdings, Inc. | 706 | 353 | 548.07 |
The target consensus for CDW at 175 suggests a significant upside from its current price of 133.16 USD. CrowdStrike’s consensus target of 548.07 also implies strong growth potential compared to its current price of 453.58 USD.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for CDW Corporation and CrowdStrike Holdings, Inc.:
Rating Comparison
CDW Rating
- Rating: B, considered very favorable by analysts.
- Discounted Cash Flow Score: 4, indicating favorable DCF.
- ROE Score: 5, very favorable efficiency in equity use.
- ROA Score: 4, favorable asset utilization.
- Debt To Equity Score: 1, very unfavorable financial risk.
- Overall Score: 3, moderate overall financial standing.
CRWD Rating
- Rating: C, considered very favorable by analysts.
- Discounted Cash Flow Score: 4, indicating favorable DCF.
- ROE Score: 1, very unfavorable efficiency in equity use.
- ROA Score: 1, very unfavorable asset utilization.
- Debt To Equity Score: 3, moderate financial risk.
- Overall Score: 2, moderate overall financial standing.
Which one is the best rated?
Based strictly on provided data, CDW holds a better rating with higher scores in ROE and ROA, and a more favorable overall score, despite a weaker debt-to-equity score compared to CrowdStrike.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for CDW and CRWD:
CDW Scores
- Altman Z-Score: 2.74, positioned in the grey zone.
- Piotroski Score: 6, indicating average financial strength.
CRWD Scores
- Altman Z-Score: 13.54, well within the safe zone.
- Piotroski Score: 4, also reflecting average financial strength.
Which company has the best scores?
Based on the data, CRWD has a significantly higher Altman Z-Score, placing it firmly in the safe zone, while CDW is in the grey zone. Both have average Piotroski Scores, with CDW slightly higher. Overall, CRWD shows stronger financial stability by this measure.
Grades Comparison
Here is a comparison of the recent grades assigned to CDW Corporation and CrowdStrike Holdings, Inc.:
CDW Corporation Grades
The table below shows the recent grades from well-known financial institutions for CDW Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | Maintain | Overweight | 2025-12-17 |
| Raymond James | Upgrade | Strong Buy | 2025-11-25 |
| Barclays | Maintain | Equal Weight | 2025-11-05 |
| UBS | Maintain | Buy | 2025-11-05 |
| Evercore ISI Group | Maintain | Outperform | 2025-10-20 |
| UBS | Maintain | Buy | 2025-08-07 |
| Barclays | Maintain | Equal Weight | 2025-08-07 |
| JP Morgan | Maintain | Neutral | 2025-07-17 |
| Citigroup | Maintain | Neutral | 2025-07-11 |
| Barclays | Maintain | Equal Weight | 2025-05-08 |
Overall, CDW Corporation’s grades show a stable to positive outlook, with multiple “Buy” and “Outperform” ratings and one upgrade to “Strong Buy.”
CrowdStrike Holdings, Inc. Grades
The table below presents recent grades from recognized financial firms for CrowdStrike Holdings, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | Maintain | Equal Weight | 2025-12-18 |
| Stephens & Co. | Maintain | Overweight | 2025-12-18 |
| Freedom Capital Markets | Upgrade | Buy | 2025-12-11 |
| Goldman Sachs | Maintain | Buy | 2025-12-04 |
| Citigroup | Maintain | Buy | 2025-12-04 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-12-03 |
| Macquarie | Maintain | Neutral | 2025-12-03 |
| DA Davidson | Maintain | Buy | 2025-12-03 |
| Citizens | Maintain | Market Outperform | 2025-12-03 |
| Scotiabank | Maintain | Sector Outperform | 2025-12-03 |
The grades for CrowdStrike Holdings, Inc. predominantly indicate confidence, with numerous “Buy,” “Overweight,” and “Outperform” ratings, alongside a recent upgrade from “Hold” to “Buy.”
Which company has the best grades?
CrowdStrike Holdings, Inc. generally received stronger grades, reflecting a slightly more optimistic consensus compared to CDW Corporation. This difference may influence investors by signaling potentially higher expected performance or growth prospects for CrowdStrike relative to CDW.
Strengths and Weaknesses
Below is a comparative analysis of key strengths and weaknesses for CDW Corporation and CrowdStrike Holdings, Inc., based on the latest available data.
| Criterion | CDW Corporation | CrowdStrike Holdings, Inc. |
|---|---|---|
| Diversification | Strong hardware, software, and services mix with $15.2B in hardware and $3.8B in software (2024) | Primarily subscription-based cybersecurity services with growing professional services segment |
| Profitability | Favorable ROIC of 13.13%, net margin 5.13%, and ROE 45.81% indicating solid profitability | Negative net margin (-0.49%) and ROE (-0.59%), low ROIC at 0.7%, showing current unprofitability |
| Innovation | Moderate innovation focus, stable revenue streams from diverse IT products | High innovation in cloud cybersecurity, with rapidly growing subscription revenue and improving ROIC trend |
| Global presence | Established North American presence with strong government and private sector clients | Expanding global footprint through cloud-based security platform adoption |
| Market Share | Large market share in IT hardware and solutions distribution | Growing market share in cybersecurity, but still developing scale compared to established peers |
Key takeaways: CDW offers a diversified and profitable business model with solid returns but faces a slight decline in profitability trends. CrowdStrike is less profitable currently but shows high growth potential and improving capital efficiency driven by innovation in cybersecurity. Investors should balance stability versus growth prospects accordingly.
Risk Analysis
The table below summarizes key risks for CDW Corporation and CrowdStrike Holdings, Inc. based on recent financial and operational data.
| Metric | CDW Corporation | CrowdStrike Holdings, Inc. |
|---|---|---|
| Market Risk | Moderate (Beta 1.063) | Moderate (Beta 1.094) |
| Debt level | High (Debt/Equity 2.55) | Low (Debt/Equity 0.24) |
| Regulatory Risk | Moderate | Moderate |
| Operational Risk | Moderate | Moderate |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate (US focus) | Moderate (Global customer base) |
CDW faces significant debt-related risk with a high debt-to-equity ratio of 2.55, increasing financial leverage concerns despite favorable returns. CrowdStrike has low debt but struggles with negative profitability metrics, which may impact operational stability. Market volatility and regulatory changes remain relevant for both companies.
Which Stock to Choose?
CDW Corporation shows a favorable income statement with a 13.7% revenue growth over five years and a 36.7% net income increase, supported by strong profitability ratios such as a 45.8% ROE and a 13.1% ROIC. Its debt level is significant with a net debt to EBITDA of 2.85, and it holds a very favorable overall rating of B.
CrowdStrike Holdings, Inc. demonstrates rapid revenue growth at 352% over five years, though profitability remains subdued with negative net margin and ROE. The company has low debt levels, reflected in a net debt to EBITDA of -12, and a very favorable rating of C, despite neutral global financial ratios.
For investors prioritizing stable profitability and value creation, CDW’s strong ROE and favorable income trends might appear more attractive, whereas growth-oriented investors could find CrowdStrike’s rapid expansion and improving profitability metrics suggestive of potential upside, despite its current value destruction indication.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of CDW Corporation and CrowdStrike Holdings, Inc. to enhance your investment decisions:
