Endava (NYSE:DAVA) versus CDW (NASDAQ:CDW) Critical Survey

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

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Endava $999.23 million 0.18 $27.45 million ($10.51) -0.30
CDW $22.90 billion 0.77 $1.07 billion $8.22 16.83

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

Profitability

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

Net Margins Return on Equity Return on Assets
Endava -57.01% 2.58% 1.45%
CDW 4.70% 49.67% 8.02%

Volatility and Risk

Endava has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, CDW has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Endava and CDW, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Endava 3 4 2 0 1.89
CDW 0 3 5 1 2.78

Endava currently has a consensus price target of $7.43, indicating a potential upside of 133.02%. CDW has a consensus price target of $144.12, indicating a potential upside of 4.16%. Given Endava’s higher possible upside, equities analysts plainly believe Endava is more favorable than CDW.

Insider & Institutional Ownership

62.2% of Endava shares are owned by institutional investors. Comparatively, 93.2% of CDW shares are owned by institutional investors. 18.8% of Endava shares are owned by company insiders. Comparatively, 0.8% of CDW shares are owned 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.

Summary

CDW beats Endava on 12 of the 15 factors compared between the two stocks.

About Endava

(Get Free Report)

Endava plc provides technology services for clients in the consumer products, healthcare, mobility, and retail verticals in North America, Europe, the United Kingdom, and internationally. It offers ideation and production services in the payments and financial services, telecommunications, media, and technology verticals; and business analysis, data analytics, program management, digital product strategy, private equity value enhancement, IT strategy, architecture, extended reality, machine learning and artificial intelligence, product design, and user experience and visual design services. The company also provides automated testing, cloud native software engineering, continuous delivery, distributed agile delivery, intelligent automation, secure development, agile applications management, cloud infrastructure, DevSecOps, service delivery, smart desk, telemetry and monitoring, organizational optimization, and transaction advisory services. Endava plc was founded in 2000 and is headquartered in London, the United Kingdom.

About CDW

(Get Free Report)

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.

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