In the ever-evolving landscape of technology, CDW Corporation and CrowdStrike Holdings, Inc. stand out as key players in their respective fields. While CDW focuses on providing comprehensive IT solutions across hardware, software, and services, CrowdStrike excels in cybersecurity and cloud-delivered protection. Both companies operate within the technology sector, but their innovative strategies and market approaches set them apart. As I delve into this comparison, I’ll help you determine which of these companies presents the most intriguing investment opportunity.
Table of contents
Company Overview
CDW Overview
CDW Corporation, headquartered in Vernon Hills, Illinois, specializes in providing comprehensive information technology solutions across North America and the UK. Founded in 1984, CDW operates through three segments: Corporate, Small Business, and Public, catering to a diverse clientele that includes government, education, and healthcare sectors. The company offers a wide array of products and services, including hardware, software, and integrated IT solutions with a focus on cloud and security capabilities. CDW’s mission is to enhance customer performance through technology, and it continues to position itself as a leader in the IT services industry with a market capitalization of approximately $19B.
CrowdStrike Overview
CrowdStrike Holdings, Inc., based in Austin, Texas, is a prominent player in the cybersecurity realm, founded in 2011. The company provides cloud-delivered security for endpoints and cloud workloads, emphasizing proactive threat intelligence and managed security services. Its flagship Falcon platform offers subscription-based solutions that leverage advanced threat detection and identity protection strategies. With a market capitalization nearing $129B, CrowdStrike’s mission is to stop breaches and secure digital environments globally, making it a vital partner for organizations seeking robust cybersecurity solutions.
Key similarities and differences
Both CDW and CrowdStrike operate within the technology sector, focusing on delivering essential IT services and security solutions. However, their business models differ significantly; CDW emphasizes a broader range of IT hardware and services, while CrowdStrike specializes in cybersecurity through subscription-based software solutions. This distinction highlights their unique approaches to addressing the evolving needs of businesses in a digital landscape.
Income Statement Comparison
The following table presents a comparative overview of the most recent income statements for CDW Corporation and CrowdStrike Holdings, Inc., which can assist in evaluating their financial performance.
| Metric | CDW Corporation | CrowdStrike Holdings, Inc. |
|---|---|---|
| Market Cap | 19.97B | 129.04B |
| Revenue | 20.99B | 3.95B |
| EBITDA | 1.93B | 0.29B |
| EBIT | 1.65B | 0.08B |
| Net Income | 1.08B | -0.02B |
| EPS | 8.06 | -0.08 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
Over the latest fiscal years, CDW has shown stable revenue and maintained a solid net income, although a slight decrease in revenue was noted compared to the previous year. Its EBITDA margin reflects efficiency, while CrowdStrike has experienced significant revenue growth but reported a net loss in its most recent year, indicating ongoing investment in growth strategies. Despite CrowdStrike’s revenue increase, its negative net income highlights the risks associated with aggressive expansion in a competitive market.
Financial Ratios Comparison
In this section, I provide a comparative analysis of the most recent revenue and financial ratios for CDW Corporation (CDW) and CrowdStrike Holdings, Inc. (CRWD).
| Metric | CDW | CRWD |
|---|---|---|
| ROE | 45.81% | -0.59% |
| ROIC | 13.13% | 0.70% |
| P/E | 21.61 | -5055.66 |
| P/B | 9.90 | 29.71 |
| Current Ratio | 1.35 | 1.67 |
| Quick Ratio | 1.24 | 1.67 |
| D/E | 2.55 | 0.24 |
| Debt-to-Assets | 40.82% | 9.07% |
| Interest Coverage | 7.70 | -4.58 |
| Asset Turnover | 1.43 | 0.45 |
| Fixed Asset Turnover | 67.26 | 4.76 |
| Payout Ratio | 30.81% | 0% |
| Dividend Yield | 1.43% | 0% |
Interpretation of Financial Ratios
CDW displays strong profitability metrics, particularly with a high ROE of 45.81% and a healthy interest coverage ratio of 7.70, indicating robust financial stability. In contrast, CRWD’s negative metrics, including a P/E ratio of -5055.66 and a negative ROE, signal significant operational challenges and heightened risk. Investors should consider these factors while assessing the potential of both companies for their portfolios.
Dividend and Shareholder Returns
CDW Corporation (CDW) pays dividends with a current annual yield of 1.43% and a payout ratio of approximately 30.8%. This ratio indicates a sustainable distribution, supported by solid free cash flow coverage. Meanwhile, CrowdStrike Holdings, Inc. (CRWD) does not pay dividends, likely due to its focus on reinvesting profits for growth during its high-expansion phase. However, CRWD engages in share buybacks, reflecting a commitment to return value to shareholders. Ultimately, CDW’s dividends suggest a strategy for sustainable long-term value, while CRWD’s approach may align with future growth potential.
Strategic Positioning
In the competitive landscape of technology services, CDW Corporation holds a significant market share, particularly in IT solutions, catering to diverse sectors including government and healthcare. In contrast, CrowdStrike Holdings, Inc. leads in cybersecurity, leveraging its robust Falcon platform for endpoint protection. Both companies face intense competitive pressure and technological disruption, especially with the rise of cloud services and advanced security threats. Their ability to adapt and innovate will be crucial for maintaining their market positions.
Stock Comparison
In this section, we analyze the weekly stock price dynamics of CDW Corporation and CrowdStrike Holdings, Inc. over the past year, highlighting significant price movements and trading behaviors.
Trend Analysis
CDW Corporation (CDW)
- Percentage Change: -33.61% over the past year indicates a bearish trend.
- Notable Highs/Lows: The stock reached a high of 255.78 and a low of 140.2, reflecting significant volatility with a standard deviation of 32.64.
- Recent Trend: In the recent period (from 2025-09-21 to 2025-12-07), the stock experienced a further decline of -9.76%, with a standard deviation of 8.21, indicating deceleration in its downward movement.
CrowdStrike Holdings, Inc. (CRWD)
- Percentage Change: +82.94% over the past year suggests a bullish trend.
- Notable Highs/Lows: This stock saw a high of 543.01 and a low of 217.89, accompanied by a high standard deviation of 79.79, indicating substantial volatility.
- Recent Trend: In the recent period (from 2025-09-21 to 2025-12-07), CRWD has shown a positive change of +3.14%, with a standard deviation of 21.73, and the trend is accelerating.
In summary, CDW exhibits a bearish trend with notable declines and increasing volatility, while CRWD shows a strong bullish trend with accelerating growth, despite high volatility.
Analyst Opinions
Recent evaluations indicate a mixed outlook for CDW Corporation and CrowdStrike Holdings, Inc. Analysts recommend a “Buy” for CDW, highlighting its solid ratings across return on equity and assets, with a B+ rating from several sources. In contrast, CrowdStrike holds a “Hold” recommendation with a C rating, primarily due to its lower scores in return on equity and assets. As of now, the consensus leans towards a “Buy” for CDW while CrowdStrike shows a cautious stance among analysts.
Stock Grades
As we analyze the latest stock ratings for CDW Corporation and CrowdStrike Holdings, Inc., we can see some interesting trends emerge.
CDW Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| 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 |
| UBS | maintain | Buy | 2025-05-08 |
| Barclays | maintain | Equal Weight | 2025-05-08 |
CrowdStrike Holdings, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Goldman Sachs | maintain | Buy | 2025-12-04 |
| Citigroup | maintain | Buy | 2025-12-04 |
| Needham | maintain | Buy | 2025-12-03 |
| DA Davidson | maintain | Buy | 2025-12-03 |
| BTIG | maintain | Buy | 2025-12-03 |
| Cantor Fitzgerald | maintain | Overweight | 2025-12-03 |
| Citizens | maintain | Market Outperform | 2025-12-03 |
| Scotiabank | maintain | Sector Outperform | 2025-12-03 |
| JP Morgan | maintain | Overweight | 2025-12-03 |
| Rosenblatt | maintain | Buy | 2025-12-03 |
Overall, CDW Corporation has seen an upgrade to “Strong Buy” from Raymond James, indicating positive sentiment, while CrowdStrike maintains a strong “Buy” rating across multiple firms, showcasing consistent confidence from analysts. This positive momentum in ratings could be indicative of their strong market positions and future growth potential.
Target Prices
The consensus target prices for CDW Corporation and CrowdStrike Holdings, Inc. indicate solid growth expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| CDW Corporation | 190 | 148 | 174.33 |
| CrowdStrike Holdings, Inc. | 706 | 353 | 545.79 |
For CDW Corporation, the current stock price of 145.74 is below the consensus target of 174.33, suggesting potential upside. Meanwhile, CrowdStrike’s price of 517.88 is well-positioned relative to its higher consensus target of 545.79, indicating strong market confidence.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of CDW Corporation and CrowdStrike Holdings, Inc., providing a comparative analysis based on recent data.
| Criterion | CDW Corporation | CrowdStrike Holdings, Inc. |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Moderate | Low |
| Innovation | Moderate | High |
| Global presence | Moderate | High |
| Market Share | High | Moderate |
| Debt level | Moderate | Low |
Key takeaways from this analysis indicate that while CrowdStrike excels in innovation and has a strong global presence, it currently struggles with profitability. On the other hand, CDW holds a significant market share and presents a balanced profile, although its diversification and profitability are moderate.
Risk Analysis
In this section, I present a comparative analysis of risks faced by CDW Corporation and CrowdStrike Holdings, Inc.
| Metric | CDW Corporation | CrowdStrike Holdings, Inc. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Moderate |
Both companies face significant market and operational risks, particularly CrowdStrike, which has shown high volatility in its earnings and operational metrics. CDW’s more stable growth trajectory is offset by its exposure to market fluctuations, while CrowdStrike’s reliance on subscription revenue makes it sensitive to economic shifts.
Which one to choose?
When comparing CDW Corporation (CDW) and CrowdStrike Holdings, Inc. (CRWD), CDW appears more favorable for conservative investors seeking stability. With a market cap of $23.3B, CDW boasts a solid gross profit margin of 21.9% and a net profit margin of 5.1%. Its rating is B+, indicating strong financial health. In contrast, CRWD, valued at $97.4B, shows a bullish stock trend with an impressive price change of 82.9%. However, it suffers from negative net margins and a C rating, reflecting ongoing profitability challenges.
Investors focused on growth may prefer CRWD due to its potential upside, whereas those prioritizing stability and consistent returns may favor CDW.
Specific risks include CDW’s reliance on market demand and CRWD’s competitive pressure in the cybersecurity sector.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of CDW Corporation and CrowdStrike Holdings, Inc. to enhance your investment decisions:
