Head to Head Analysis: Datasea (NASDAQ:DTSS) & CDW (NASDAQ:CDW)

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

Earnings and Valuation

This table compares CDW and Datasea”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CDW	$22.42 billion	0.68	$1.07 billion	$8.09	14.54
Datasea	$71.62 million	0.13	-$5.09 million	($0.32)	-2.73

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

Insider & Institutional Ownership

93.2% of CDW shares are owned by institutional investors. Comparatively, 82.1% of Datasea shares are owned by institutional investors. 0.8% of CDW shares are owned by company insiders. Comparatively, 50.7% of Datasea shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

CDW has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Datasea has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CDW and Datasea, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CDW	0	5	2	1	2.50
Datasea	1	0	0	0	1.00

CDW presently has a consensus price target of $160.43, indicating a potential upside of 36.43%. Given CDW’s stronger consensus rating and higher probable upside, equities analysts plainly believe CDW is more favorable than Datasea.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CDW	4.76%	50.66%	8.18%
Datasea	-4.80%	-88.98%	-37.33%

Summary

CDW beats Datasea on 14 of the 15 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 Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.