CDW Corp (CDW)vsGDS Holdings Ltd (GDS)
CDW
CDW Corp
$165.20
+1.56%
TECHNOLOGY · Cap: $20.34B
GDS
GDS Holdings Ltd
$23.16
-2.93%
TECHNOLOGY · Cap: $4.57B
Smart Verdict
WallStSmart Research — data-driven comparison
CDW Corp generates 92% more annual revenue ($23.50B vs $12.26B). GDS leads profitability with a 30.5% profit margin vs 4.6%. GDS appears more attractively valued with a PEG of 0.53. GDS earns a higher WallStSmart Score of 77/100 (B+).
CDW
Buy59
out of 100
Grade: C
GDS
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+4.6%
Fair Value
$141.44
Current Price
$165.20
$23.76 discount
Margin of Safety
+15.6%
Fair Value
$55.06
Current Price
$23.16
$31.90 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 44 in profit
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 31 of every $100 in revenue as profit
Earnings expanding 207.0% YoY
Growing faster than its price suggests
Areas to Watch
Trading at 8.5x book value
4.9% earnings growth
Grey zone — moderate risk
4.6% margin — thin
Elevated debt levels
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : CDW
The strongest argument for CDW centers on Return on Equity. PEG of 1.34 suggests the stock is reasonably priced for its growth.
Bull Case : GDS
The strongest argument for GDS centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 30.5% and operating margin at 14.2%. PEG of 0.53 suggests the stock is reasonably priced for its growth.
Bear Case : CDW
The primary concerns for CDW are Price/Book, EPS Growth, Altman Z-Score. Debt-to-equity of 2.44 is elevated, increasing financial risk. Thin 4.6% margins leave little buffer for downturns.
Bear Case : GDS
The primary concerns for GDS are Debt/Equity, Altman Z-Score.
Key Dynamics to Monitor
CDW profiles as a value stock while GDS is a mature play — different risk/reward profiles.
CDW carries more volatility with a beta of 0.94 — expect wider price swings.
CDW is growing revenue faster at 10.0% — sustainability is the question.
GDS generates stronger free cash flow (162M), providing more financial flexibility.
Bottom Line
GDS scores higher overall (77/100 vs 59/100), backed by strong 30.5% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
CDW Corp
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
CDW Corporation, headquartered in Lincolnshire, Illinois, is a provider of technology products and services for business, government and education.
Visit Website →GDS Holdings Ltd
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · China
GDS Holdings Limited, develops and operates data centers in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.
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