CDW (NASDAQ:CDW) & RDE (NASDAQ:GIFT) Critical Review

RDE (NASDAQ:GIFT) and CDW (NASDAQ:CDW) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RDE	N/A	-62.87%	-38.24%
CDW	5.33%	58.31%	9.31%

Valuation and Earnings

This table compares RDE and CDW”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RDE	$97.01 million	0.30	N/A	N/A	N/A
CDW	$21.38 billion	1.25	$1.10 billion	$8.18	24.43

CDW has higher revenue and earnings than RDE.

Institutional & Insider Ownership

93.2% of CDW shares are owned by institutional investors. 20.5% of RDE shares are owned by company insiders. Comparatively, 0.9% of CDW shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for RDE and CDW, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RDE	0	0	1	0	3.00
CDW	0	4	5	0	2.56

RDE currently has a consensus target price of $4.00, suggesting a potential upside of 257.14%. CDW has a consensus target price of $242.67, suggesting a potential upside of 21.42%. Given RDE’s stronger consensus rating and higher possible upside, equities analysts clearly believe RDE is more favorable than CDW.

Volatility and Risk

RDE has a beta of -0.72, indicating that its share price is 172% less volatile than the S&P 500. Comparatively, CDW has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Summary

CDW beats RDE on 8 of the 11 factors compared between the two stocks.

About RDE

RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.

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.