CDW (NASDAQ:CDW – Get Free Report) and Telos (NASDAQ:TLS – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.
Volatility & Risk
CDW has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Telos has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for CDW and Telos, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CDW | 0 | 4 | 4 | 1 | 2.67 |
| Telos | 1 | 2 | 3 | 0 | 2.33 |
Profitability
This table compares CDW and Telos’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CDW | 4.70% | 49.67% | 8.02% |
| Telos | -14.25% | -11.95% | -8.45% |
Institutional and Insider Ownership
93.2% of CDW shares are held by institutional investors. Comparatively, 62.1% of Telos shares are held by institutional investors. 0.8% of CDW shares are held by insiders. Comparatively, 14.9% of Telos shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares CDW and Telos”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CDW | $22.42 billion | 0.75 | $1.07 billion | $8.22 | 16.08 |
| Telos | $164.80 million | 2.07 | -$36.55 million | ($0.35) | -13.06 |
CDW has higher revenue and earnings than Telos. Telos is trading at a lower price-to-earnings ratio than CDW, indicating that it is currently the more affordable of the two stocks.
Summary
CDW beats Telos on 12 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 Telos
Telos Corporation, together with its subsidiaries, provides cyber, cloud, and enterprise security solutions worldwide. The company operates in two segments, Security Solutions and Secure Networks. It provides Xacta, a platform for enterprise cyber risk management and security compliance automation; and consulting, assessment and compliance, engineering and evaluation, operations, and penetration testing services. The company also offers Telos Automated Message Handling System, a web-based organizational message distribution and management for mission-critical communications used by military field operatives; and Telos Advanced Cyber Analytics solution, which is a threat feed source of global Internet Protocol addresses known to engage in potentially malicious activity, including mass scanning and generic opportunistic attacks; and Telos Ghost, a solution to eliminate cyberattack surfaces by obfuscating and encrypting data, masking user identity and location, and hiding network resources, as well as provides security and privacy for intelligence gathering, cyber threat protection, securing critical infrastructure, and protecting communications and applications. In addition, the company provides IDTrust360, an enterprise digital trusted identity risk platform for extending flexible hybrid cloud identity services; and ONYX, a touchless fingerprint biometric solution for mobile devices. Further, it offers secure mobility solutions that enable remote work and minimize operational and security concerns across and beyond the enterprise; and network management and defense services for operating, administrating, and defending complex enterprise networks and services for defensive cyber operations. It serves the United States federal government, large commercial businesses, state and local governments, and international customers. Telos Corporation was founded in 1968 and is headquartered in Ashburn, Virginia.
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