Reviewing CDW Corporation (CDW) and ARI Network Services (NASDAQ:ARIS)
CDW Corporation (NASDAQ: CDW) and ARI Network Services (NASDAQ:ARIS) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitabiliy and valuation.
Volatility & Risk
CDW Corporation has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, ARI Network Services has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.
CDW Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 1.0%. ARI Network Services does not pay a dividend. CDW Corporation pays out 26.2% of its earnings in the form of a dividend.
This table compares CDW Corporation and ARI Network Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ARI Network Services||4.85%||8.15%||4.56%|
Earnings and Valuation
This table compares CDW Corporation and ARI Network Services’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CDW Corporation||$14.19 billion||0.69||$1.08 billion||$2.44||25.63|
|ARI Network Services||$51.16 million||2.40||$6.53 million||$0.14||50.36|
CDW Corporation has higher revenue and earnings than ARI Network Services. CDW Corporation is trading at a lower price-to-earnings ratio than ARI Network Services, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
90.9% of CDW Corporation shares are held by institutional investors. Comparatively, 32.9% of ARI Network Services shares are held by institutional investors. 2.2% of CDW Corporation shares are held by insiders. Comparatively, 8.7% of ARI Network Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and recommmendations for CDW Corporation and ARI Network Services, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ARI Network Services||1||1||0||0||1.50|
CDW Corporation currently has a consensus price target of $61.31, suggesting a potential downside of 1.95%. Given CDW Corporation’s stronger consensus rating and higher possible upside, research analysts plainly believe CDW Corporation is more favorable than ARI Network Services.
CDW Corporation beats ARI Network Services on 12 of the 17 factors compared between the two stocks.
About CDW Corporation
CDW Corporation (CDW) is a provider of integrated information technology (IT) solutions in the United States, Canada and the United Kingdom. The Company’s segments include Corporate, Public and Other. The Corporate segment consists of private sector business customers in the United States based on employee size between Medium/Large customers, which primarily includes organizations with more than 100 employees, and Small Business customers, which primarily includes organizations with up to 100 employees. Its Public segment comprises government agencies and education and healthcare institutions in the United States. Its Other segment includes Canada and CDW UK. The CDW Advanced Services business consists primarily of customized engineering services delivered by technology specialists and engineers, and managed services that include Infrastructure as a Service (IaaS) offerings. The Company has centralized logistics and headquarters functions that provide services to the segments.
About ARI Network Services
ARI Network Services, Inc. (ARI) provides Website, software and data solutions. The Company’s solutions include Lead Generation and eCommerce Websites, eCatalogs, Business Management Software, Digital Marketing Services. It offers a menu of Website add-ons, including a mobile inventory management application, third-party inventory integrations and business management integrations. Its eCatalog solutions offer access to its library of electronic product content through a suite of software-as-a-service (SaaS) and data-as-a-service (DaaS) solutions. Its Business Management Software solutions are offered in the automotive tire and wheel aftermarket (ATW) aftermarket under the TCS Technologies, an ARI Company brand name. ARI’s Digital Marketing Services include search engine optimization, e-mail marketing, search engine marketing (PPC), online reputation management and online directory management. The Company’s other solutions include software, professional services and hosting services.
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