In the fast-paced world of technology, two companies stand out for their innovative approaches: CDW Corporation and CrowdStrike Holdings, Inc. Both operate within the technology sector, yet they focus on different aspects—CDW provides comprehensive IT solutions, while CrowdStrike specializes in cloud-based cybersecurity. This comparison highlights their market overlap and distinct innovation strategies. As I delve into the strengths and weaknesses of each company, I aim to help you determine which one might be the more compelling investment opportunity.
Table of contents
Company Overview
CDW Overview
CDW Corporation, founded in 1984 and headquartered in Vernon Hills, Illinois, is a leading provider of information technology (IT) solutions in North America and the UK. With a market cap of approximately $18.25B, CDW serves a diverse clientele, including government, education, and healthcare sectors, alongside businesses of all sizes. The company operates through three segments: Corporate, Small Business, and Public, offering a comprehensive range of products and services. These include hardware, software, and integrated IT solutions, which encompass on-premise, hybrid, and cloud capabilities. CDW’s strategic focus on delivering tailored IT solutions positions it as a pivotal player in the evolving technology landscape.
CrowdStrike Overview
CrowdStrike Holdings, Inc., established in 2011 and based in Austin, Texas, specializes in cloud-delivered cybersecurity solutions. With a market capitalization of about $121.55B, CrowdStrike provides advanced protection across endpoints, cloud workloads, identity, and data through its Falcon platform. The company focuses on subscription-based services, including threat intelligence and managed security services, catering to a global customer base. With an emphasis on Zero Trust principles and proactive threat hunting, CrowdStrike has emerged as a leader in the cybersecurity sector, addressing the increasing demand for robust digital security solutions.
Key Similarities and Differences
Both CDW and CrowdStrike operate within the technology sector, emphasizing IT solutions and services. However, their business models diverge; CDW focuses on a broad range of IT products and services, while CrowdStrike specializes in cloud-based cybersecurity solutions. CDW adopts a more traditional IT services approach, whereas CrowdStrike leverages a subscription model for its cybersecurity offerings.
Income Statement Comparison
The following table summarizes the latest income statements for CDW Corporation and CrowdStrike Holdings, Inc., highlighting key financial metrics for your investment analysis.
| Metric | CDW Corporation | CrowdStrike Holdings, Inc. |
|---|---|---|
| Revenue | 20.998B | 3.954B |
| EBITDA | 1.925B | 294.8M |
| EBIT | 1.650B | 80.8M |
| Net Income | 1.078B | -19.3M |
| EPS | 8.06 | -0.08 |
Interpretation of Income Statement
In the most recent fiscal year, CDW Corporation demonstrated strong revenue resilience, generating nearly 21B with a steady net income of 1.078B, highlighting its effective cost management. Conversely, CrowdStrike’s revenue grew to 3.954B; however, it reported a net loss of 19.3M, indicating challenges in profitability despite its top-line growth. While CDW maintained healthy margins, CrowdStrike’s margins remain under pressure, reflecting ongoing investment in growth strategies. Overall, CDW appears more stable, while investors in CrowdStrike should be cautious due to its current loss position.
Financial Ratios Comparison
The table below provides a comparative overview of the most recent financial ratios for CDW Corporation and CrowdStrike Holdings, Inc. This analysis will help you understand their financial health and performance metrics.
| 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 robust financial ratios, particularly with a high ROE of 45.81% and a solid interest coverage ratio of 7.70, indicating strong profitability and ability to cover interest obligations. In contrast, CrowdStrike’s metrics reveal significant concerns, highlighted by a negative P/E ratio and low profitability, as indicated by its negative ROE and interest coverage ratio. These factors suggest higher risk for investors considering CrowdStrike in their portfolios.
Dividend and Shareholder Returns
CDW Corporation is committed to returning value to its shareholders through dividends, with a payout ratio of approximately 30.8% and a dividend yield of 1.43%. The company has shown a consistent trend in increasing its dividend per share, indicating a solid cash flow coverage. Conversely, CrowdStrike Holdings, Inc. does not pay dividends as it prioritizes reinvestment for growth, maintaining a negative net income. However, it engages in share buybacks, suggesting a strategy focused on long-term value creation despite the absence of direct cash returns to shareholders. Both approaches reflect distinct strategies aimed at sustaining shareholder value.
Strategic Positioning
CDW Corporation holds a significant market share in the IT solutions sector, catering to diverse customer segments, including corporate and government clients. Its extensive product offerings position it competitively against peers like CrowdStrike Holdings, which specializes in cloud-delivered cybersecurity solutions. While CDW faces competitive pressure from emerging technology firms, CrowdStrike’s focus on advanced threat detection and managed services highlights the technological disruption within the cybersecurity landscape. Both companies must navigate these dynamics to maintain their market positions effectively.
Stock Comparison
In this section, I will analyze the weekly stock price movements of CDW Corporation and CrowdStrike Holdings, Inc. over the past year, highlighting significant price changes and overall trading dynamics.
Trend Analysis
CDW Corporation (CDW) Over the past year, CDW’s stock has experienced a significant decline of -38.32%. This bearish trend indicates a consistent downward movement in price, with the highest price recorded at 255.78 and the lowest at 140.20. The trend shows signs of deceleration, with a recent percentage change of -17.4% over a shorter period (from September 7, 2025, to November 23, 2025), accompanied by a standard deviation of 9.39, suggesting increased volatility in recent trading.
CrowdStrike Holdings, Inc. (CRWD) In contrast, CRWD has demonstrated remarkable growth, with a price increase of 92.18% over the past year, reflecting a strong bullish trend. The stock has shown acceleration, reaching a peak price of 543.01 and a low of 217.89. Recently, CRWD’s stock price increased by 17.49% in the same timeframe as CDW, with a standard deviation of 37.66, indicating a higher level of volatility compared to CDW.
In summary, while CDW is currently facing challenges reflected in its bearish trend, CRWD is exhibiting strong upward momentum, making it a more favorable option for investors at this time.
Analyst Opinions
Recent analyst recommendations indicate a mixed outlook for CDW Corporation and CrowdStrike Holdings, Inc. Analysts have rated CDW with a B+ and a consensus recommendation to buy, highlighting its strong return on equity (5) and solid discounted cash flow score (4). In contrast, CrowdStrike has received a C- rating, with analysts suggesting a hold due to its weaker performance metrics, including a return on equity score of 1. For 2025, the consensus leans towards a buy for CDW while sentiment around CRWD remains cautious.
Stock Grades
In this section, I will present the latest stock ratings for CDW Corporation and CrowdStrike Holdings, Inc., based on reliable grading data.
CDW Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Buy | 2025-11-05 |
| Barclays | Maintain | Equal Weight | 2025-11-05 |
| Evercore ISI Group | Maintain | Outperform | 2025-10-20 |
| Barclays | Maintain | Equal Weight | 2025-08-07 |
| UBS | Maintain | Buy | 2025-08-07 |
| JP Morgan | Maintain | Neutral | 2025-07-17 |
| Citigroup | Maintain | Neutral | 2025-07-11 |
| Citigroup | Maintain | Neutral | 2025-05-08 |
| UBS | Maintain | Buy | 2025-05-08 |
| Barclays | Maintain | Equal Weight | 2025-05-08 |
CrowdStrike Holdings, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Oppenheimer | Maintain | Outperform | 2025-11-21 |
| Truist Securities | Maintain | Buy | 2025-11-18 |
| Rosenblatt | Maintain | Buy | 2025-11-18 |
| Mizuho | Maintain | Neutral | 2025-11-17 |
| Stifel | Maintain | Buy | 2025-11-17 |
| Barclays | Maintain | Overweight | 2025-11-14 |
| Baird | Maintain | Neutral | 2025-11-14 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-13 |
| BTIG | Maintain | Buy | 2025-11-04 |
| Oppenheimer | Maintain | Outperform | 2025-10-17 |
Overall, both CDW and CrowdStrike are maintaining a strong outlook with several ratings of “Buy” and “Outperform” from reputable grading companies. This suggests a positive sentiment among analysts regarding their future performance.
Target Prices
The consensus target prices for CDW Corporation and CrowdStrike Holdings, Inc. indicate optimistic expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| CDW Corporation | 190 | 148 | 169 |
| CrowdStrike Holdings, Inc. | 706 | 430 | 541.57 |
For CDW, the current stock price of 140.2 is significantly below the consensus target of 169, suggesting potential upside. Meanwhile, CrowdStrike’s price of 490.67 is also below its target consensus of 541.57, indicating room for growth according to analyst expectations.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of CDW Corporation and CrowdStrike Holdings, Inc., based on their latest financial and operational data.
| Criterion | CDW Corporation | CrowdStrike Holdings, Inc. |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Positive (5.13%) | Negative (-0.49%) |
| Innovation | Moderate | High |
| Global presence | Limited (US, UK, Canada) | Extensive (Worldwide) |
| Market Share | Strong | Growing |
| Debt level | Moderate (40%) | Low (9%) |
Key takeaways indicate that while CDW has a strong market presence and profitability, its geographic diversification is limited compared to CrowdStrike, which excels in innovation and market growth despite currently facing negative profitability. Consider these factors when evaluating potential investments.
Risk Analysis
In the following table, I will outline the key risks associated with CDW Corporation and CrowdStrike Holdings, Inc. for your consideration.
| 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 | High |
In summary, CrowdStrike faces significant operational and market risks, exacerbated by its high valuation and recent financial volatility. CDW, while also exposed to market fluctuations, maintains a more stable risk profile with lower regulatory exposure.
Which one to choose?
When comparing CDW Corporation (CDW) and CrowdStrike Holdings, Inc. (CRWD), CDW shows stronger fundamentals with a market cap of 23B, consistent profitability, and a solid rating of B+. Their financial ratios, including a gross profit margin of 22% and a net income of 1.08B, suggest a stable performance. Conversely, CRWD, despite a significant market cap of 97B, has struggled with profitability, indicated by a C- rating and a negative net income. CDW’s stock trend is bearish, while CRWD has seen a bullish trend with a 92% price increase in the last year, showcasing growth potential.
Investors focused on stability and consistent returns may prefer CDW, while those willing to take on higher risk for potential growth might lean towards CRWD. However, investors should remain cautious due to competitive pressures and the volatility inherent in tech stocks.
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:
