Head-To-Head Survey: CDW (NASDAQ:CDW) vs. Evolv Technologies (NASDAQ:EVLV)

CDW (NASDAQ:CDW) and Evolv Technologies (NASDAQ:EVLV) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Earnings and Valuation

This table compares CDW and Evolv Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CDW	$22.42 billion	0.58	$1.07 billion	$8.22	12.47
Evolv Technologies	$145.90 million	8.52	-$33.14 million	($0.21)	-32.95

CDW has higher revenue and earnings than Evolv Technologies. Evolv Technologies is trading at a lower price-to-earnings ratio than CDW, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for CDW and Evolv Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CDW	0	5	2	1	2.50
Evolv Technologies	1	0	3	2	3.00

CDW currently has a consensus price target of $142.14, indicating a potential upside of 38.62%. Evolv Technologies has a consensus price target of $9.13, indicating a potential upside of 31.86%. Given CDW’s higher probable upside, equities analysts clearly believe CDW is more favorable than Evolv Technologies.

Profitability

This table compares CDW and Evolv Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CDW	4.70%	49.67%	8.02%
Evolv Technologies	-22.71%	-30.45%	-11.58%

Risk & Volatility

CDW has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Evolv Technologies has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500.

Institutional & Insider Ownership

93.2% of CDW shares are owned by institutional investors. Comparatively, 66.7% of Evolv Technologies shares are owned by institutional investors. 0.8% of CDW shares are owned by insiders. Comparatively, 11.3% of Evolv Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

CDW beats Evolv Technologies on 8 of the 14 factors compared between the two stocks.

About CDW

CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. It also provides hardware products comprising notebooks/mobile devices, tablets, network communications, desktop computers, collaboration, data storage and servers, and others; and software products, such as cloud solutions, software assurance, application suites, security, virtualization, operating systems, and network management. In addition, the company offers advisory and design, software development, implementation, managed, professional, configuration, partner, and telecom services, as well as warranties; delivers and manages mission critical software, systems, and network solutions; and implementation and installation, and repair services to its customers through various third-party service providers. It serves government, education, and healthcare customers; and small, medium, and large business customers. CDW Corporation was founded in 1984 and is headquartered in Vernon Hills, Illinois.

About Evolv Technologies

Evolv Technologies Holdings, Inc. provides artificial intelligence (AI)-based weapons detection for security screening in the United States and internationally. Its products include Evolv Express, a touchless security screening system designed to detect firearms, improvised explosive devices, and tactical knives; and Evolv Insights that provides self-serve access, insights regarding visitor flow and arrival curves, location specific performance, system detection performance, and alarm statistics. The company was founded in 2013 and is headquartered in Waltham, Massachusetts.