Contrasting CDW (NASDAQ:CDW) & CLPS Incorporation (NASDAQ:CLPS)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CDW	4.76%	51.89%	8.35%
CLPS Incorporation	N/A	N/A	N/A

Institutional & Insider Ownership

93.2% of CDW shares are held by institutional investors. Comparatively, 0.2% of CLPS Incorporation shares are held by institutional investors. 0.8% of CDW shares are held by company insiders. Comparatively, 58.7% of CLPS Incorporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CDW	$21.00 billion	0.91	$1.08 billion	$7.92	18.53
CLPS Incorporation	$164.48 million	0.15	-$7.05 million	N/A	N/A

CDW has higher revenue and earnings than CLPS Incorporation.

Volatility & Risk

CDW has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, CLPS Incorporation has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for CDW and CLPS Incorporation, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CDW	0	5	3	0	2.38
CLPS Incorporation	1	0	0	0	1.00

CDW currently has a consensus price target of $196.29, suggesting a potential upside of 33.76%. Given CDW’s stronger consensus rating and higher probable upside, research analysts clearly believe CDW is more favorable than CLPS Incorporation.

Summary

CDW beats CLPS Incorporation on 11 of the 12 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 CLPS Incorporation

CLPS Incorporation provides information technology (IT), consulting, and solutions to institutions operating in banking, insurance, and financial sectors in the People's Republic of China and internationally. It offers IT consulting services in credit card business areas, such as credit card application, account setup, authorization and activation, settlement, collection, promotion, point system, anti-fraud, statement, reporting, and risk management. The company also provides banking services, including business analysis, system design, development, testing, system maintenance, and operation support; and services in loans, deposit, general ledger, wealth management, debit card, anti-money-laundering, statement and reporting, and risk management, as well as architecture consulting services for banking systems, and online and mobile banking. In addition, it offers solutions in the field of wealth management; e-commerce solutions in online platforms, cross-border e-commerce, logistics, and back-end technology, such as big data analysis and intelligent decision-making; and driving, automatic control, and other AI-driven technology solutions for the automotive industry. Further, the company provides IT services to its clients in the banking, wealth management, e-commerce, and automotive industries; and software project development, maintenance, and testing services. Additionally, it offers CLPS Virtual Banking platform, a training platform for IT talents; recruitment and headhunting; and fee-for-service training services, as well as sells product and third-party software. The company was founded in 2005 and is headquartered in Kwun Tong, Hong Kong.