CDW (NASDAQ:CDW) vs. Endava (NYSE:DAVA) Critical Review

Endava (NYSE:DAVA) and CDW (NASDAQ:CDW) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Profitability

This table compares Endava and CDW’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Endava	-57.01%	2.58%	1.45%
CDW	4.70%	49.67%	8.02%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Endava and CDW, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Endava	3	4	2	0	1.89
CDW	0	3	5	1	2.78

Endava presently has a consensus price target of $7.43, suggesting a potential upside of 133.02%. CDW has a consensus price target of $144.12, suggesting a potential upside of 4.16%. Given Endava’s higher probable upside, equities analysts clearly believe Endava is more favorable than CDW.

Institutional and Insider Ownership

62.2% of Endava shares are held by institutional investors. Comparatively, 93.2% of CDW shares are held by institutional investors. 18.8% of Endava shares are held by insiders. Comparatively, 0.8% of CDW shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Endava and CDW”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Endava	$999.23 million	0.18	$27.45 million	($10.51)	-0.30
CDW	$22.90 billion	0.77	$1.07 billion	$8.22	16.83

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

Risk & Volatility

Endava has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, CDW has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Summary

CDW beats Endava on 12 of the 15 factors compared between the two stocks.

About Endava

Endava plc provides technology services for clients in the consumer products, healthcare, mobility, and retail verticals in North America, Europe, the United Kingdom, and internationally. It offers ideation and production services in the payments and financial services, telecommunications, media, and technology verticals; and business analysis, data analytics, program management, digital product strategy, private equity value enhancement, IT strategy, architecture, extended reality, machine learning and artificial intelligence, product design, and user experience and visual design services. The company also provides automated testing, cloud native software engineering, continuous delivery, distributed agile delivery, intelligent automation, secure development, agile applications management, cloud infrastructure, DevSecOps, service delivery, smart desk, telemetry and monitoring, organizational optimization, and transaction advisory services. Endava plc was founded in 2000 and is headquartered in London, the United Kingdom.

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.