CNXN vs CDW

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

8% revenue growth year-over-year, versus 2. 5% for PC Connection, Inc. (CNXN). 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 PC Connection, Inc. (CNXN) a "Buy" — based on 1 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 PC Connection, Inc. at 19. 8x. On forward P/E, CDW Corporation is actually cheaper at 10. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: CDW Corporation wins at 1. 26x versus PC Connection, Inc. 's 1. 82x — a reasonable growth-adjusted valuation.

Over the past 5 years, PC Connection, Inc.

(CNXN) delivered a total return of +38. 8%, compared to -30. 2% for CDW Corporation (CDW). Over 10 years, the gap is even starker: CDW returned +210. 0% versus CNXN's +193. 9%. 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), PC Connection, Inc.

(CNXN) is the lower-risk stock at 0. 83β versus CDW Corporation's 1. 15β — meaning CDW is approximately 39% more volatile than CNXN relative to the S&P 500. On balance sheet safety, PC Connection, Inc. (CNXN) carries a lower debt/equity ratio of 0% 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 2. 5% for PC Connection, Inc. (CNXN). On earnings-per-share growth, the picture is similar: CDW Corporation grew EPS 1. 4% year-over-year, compared to -0. 6% for PC Connection, 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. 9% for PC Connection, 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 3. 6% for CNXN. 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, CDW Corporation (CDW) is the more undervalued stock at a PEG of 1. 26x versus PC Connection, Inc. 's 1. 82x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, CDW Corporation (CDW) trades at 10. 4x forward P/E versus 16. 5x for PC Connection, Inc. — 6. 2x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

CDW Corporation (CDW) offers the highest yield at 2. 3%, versus 0. 9% for PC Connection, Inc. (CNXN).

For long-horizon retirement investors, PC Connection, Inc.

(CNXN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 83), 0. 9% yield, +193. 9% 10Y return). Both have compounded well over 10 years (CNXN: +193. 9%, CDW: +210. 0%), 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.

In terms of investment character: CNXN is a small-cap quality compounder stock; CDW is a mid-cap deep-value stock. 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.