CDW vs SCSC

For growth investors, CDW Corporation (CDW) is the stronger pick with 6.

8% revenue growth year-over-year, versus -6. 7% for ScanSource, Inc. (SCSC). CDW Corporation (CDW) offers the better valuation at 13. 5x trailing P/E (10. 4x forward), making it the more compelling value choice. Analysts rate CDW Corporation (CDW) a "Buy" — based on 18 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, CDW Corporation (CDW) is the cheapest at 13.

5x versus ScanSource, Inc. at 13. 6x. On forward P/E, CDW Corporation is actually cheaper at 10. 4x.

Over the past 5 years, ScanSource, Inc.

(SCSC) delivered a total return of +29. 7%, compared to -30. 2% for CDW Corporation (CDW). Over 10 years, the gap is even starker: CDW returned +210. 0% versus SCSC's +2. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), CDW Corporation (CDW) is the lower-risk stock at 1.

15β versus ScanSource, Inc. 's 1. 48β — meaning SCSC is approximately 29% more volatile than CDW relative to the S&P 500. On balance sheet safety, ScanSource, Inc. (SCSC) carries a lower debt/equity ratio of 16% versus 2% for CDW Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), CDW Corporation (CDW) is pulling ahead at 6.

8% versus -6. 7% for ScanSource, Inc. (SCSC). On earnings-per-share growth, the picture is similar: CDW Corporation grew EPS 1. 4% year-over-year, compared to -2. 0% for ScanSource, Inc.. Over a 3-year CAGR, CDW leads at -1. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

CDW Corporation (CDW) is the more profitable company, earning 4.

8% net margin versus 2. 4% for ScanSource, Inc. — meaning it keeps 4. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CDW leads at 7. 4% versus 2. 8% for SCSC. At the gross margin level — before operating expenses — CDW leads at 21. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, CDW Corporation (CDW) trades at 10.

4x forward P/E versus 10. 4x for ScanSource, Inc. — 0. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CDW: 49. 0% to $162. 40.

In this comparison, CDW (2.

3% yield) pays a dividend. SCSC does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, CDW Corporation (CDW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

15), 2. 3% yield, +210. 0% 10Y return). Both have compounded well over 10 years (CDW: +210. 0%, SCSC: +2. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

CDW pays a dividend while SCSC does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.