CNXN vs CDW Stock Comparison: AI Score, Valuation, Performance and Upside
CNXN (PC Connection) and CDW are both U.S. IT products distribution and solutions companies — PC Connection is a mid-size IT solutions provider with approximately $3-4 billion in revenue emphasizing relationship-based service for business, enterprise, and public sector customers, while CDW is the largest U.S. IT products distributor at $24B+ in annual net sales with scale purchasing advantages, multi-channel sales, and growing services revenue.
CNXN vs CDW is mid-size IT solutions provider with customer intimacy and public sector contract specialization (PC Connection's relationship-based sales, government/education procurement expertise, and smaller enterprise customer focus — limited purchasing scale vs. CDW's manufacturer leverage) versus large-cap IT distribution leader with scale purchasing power and services growth (CDW's $24B revenue base, preferential manufacturer pricing, multi-channel hybrid sales, and growing managed services margin — IT capex cycle sensitivity and growth rate limitations at scale).
CDW holds the edge across 4 of 5 key metrics in this comparison. CNXN has delivered stronger 1-year price return (+43.90% vs -3.27%), though CDW has the better forward P/E setup (12.37x vs 18.05x for CNXN). On fundamentals, CNXN is growing revenue faster (12.40%), while CDW maintains the higher operating margin (7.34%) — a classic growth-versus-profitability split. Analyst consensus implies similar upside for both: +3.00% for CNXN and +5.55% for CDW.
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want smaller-cap IT distribution exposure through a relationship-focused solutions provider with public sector (government and education) contract vehicle specialization and customer intimacy advantages
- Value PC Connection's capital return programs (dividends and share buybacks) funded by steady cash generation from the IT distribution business
- Prefer a simpler, more focused IT distribution business vs. CDW's larger, more complex multi-segment, multi-country operation
- Want large-cap IT distribution exposure through the dominant U.S. IT products reseller with significant scale purchasing advantages, multi-channel sales capabilities, and growing services revenue
- Value CDW's consistent free cash flow generation used for dividends, share buybacks, and acquisitions that has driven strong long-term total shareholder returns
- Believe CDW's growing services and cloud adoption capabilities position it to benefit from the enterprise digital transformation trend beyond simple hardware reselling
| Metric | CNXN | CDW |
|---|---|---|
| AI scorei | 41.3 | 47.9 |
| AI ranki | #1031 | #755 |
| Latest closei | $86.76 | $149.77 |
| 1M returni | -6.08% | +12.36% |
| 3M returni | +1.47% | -2.75% |
| 6M returni | +34.93% | +9.48% |
| 1Y returni | +43.90% | -3.27% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | CNXN | CDW |
|---|---|---|
| 1Y ago | $14.87K (+48.7%) started 2025-11-03 | $10.57K (+5.7%) started 2025-11-04 |
| 5Y ago | $20.76K (+107.6%) started 2021-11-03 | $8.8K (-12.0%) started 2021-11-04 |
| 10Y ago | $46.92K (+369.2%) started 2016-11-03 | $41.86K (+318.6%) started 2016-11-04 |
Hypothetical — past performance does not guarantee future results.
| Metric | CNXN | CDW |
|---|---|---|
| Market capi | $2.03B | $18.46B |
| Trailing P/Ei | 21.32 | 17.77 |
| Forward P/Ei | 18.05 | 12.37 |
| Price/Salesi | N/A | 1.10 |
| EV/Revenuei | 0.56 | 1.04 |
| Analyst targeti | $83.00 | $155.89 |
| Target upsidei | +3.00% | +5.55% |
| Metric | CNXN | CDW |
|---|---|---|
| Revenue growthi | 12.40% | 10.00% |
| Earnings growthi | 35.10% | 4.90% |
| EPS growthi | +35.10% | +4.90% |
| FCF margini | +0.40% | +2.88% |
| Operating margini | 5.04% | 7.34% |
| Profit margini | 3.21% | 4.60% |
| ROIC proxyi | 10.43% | 44.01% |
| Return on equityi | 10.43% | 44.01% |
| Dividend yieldi | 1.00% | 1.71% |
| Payout ratioi | 18.52% | 30.23% |
| Dividend growth streaki | 2 yrs | No increase yet |
| Betai | 0.87 | 0.94 |
| Debt/equityi | 0.79 | 263.28 |
| Current ratioi | 2.88 | 1.17 |
| Quick ratioi | 2.38 | 1.01 |
Over the past year, CNXN and CDW have moved moderately in the same direction (correlation of 0.45), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | CNXN | CDW |
|---|---|---|---|
| 1Y | Growthi | +47.01% | +5.72% |
| CAGRi | +47.20% | +5.74% | |
| Volatilityi | 25.76% | 46.93% | |
| Sharpe ratioi | 1.46 | 0.27 | |
| Sortino ratioi | 2.27 | 0.36 | |
| Max drawdowni | 16.91% | 33.74% | |
| Current drawdowni | 8.88% | 9.34% | |
| Avg drawdowni | 4.64% | 10.81% | |
| Ulcer Indexi | 6.11% | 13.24% | |
| Max daily dropi | 4.58% | 20.32% | |
| Max wkly dropi | 9.07% | 27.41% | |
| 5Y | Growthi | +95.60% | -15.63% |
| CAGRi | +14.37% | -3.34% | |
| Volatilityi | 29.10% | 33.33% | |
| Sharpe ratioi | 0.45 | -0.07 | |
| Sortino ratioi | 0.67 | -0.09 | |
| Max drawdowni | 30.25% | 61.02% | |
| Current drawdowni | 8.88% | 41.21% | |
| Avg drawdowni | 10.95% | 22.22% | |
| Ulcer Indexi | 13.24% | 27.52% | |
| Max daily dropi | 13.99% | 20.32% | |
| Max wkly dropi | 19.59% | 27.41% | |
| 10Y | Growthi | +319.49% | +277.76% |
| CAGRi | +15.42% | +14.22% | |
| Volatilityi | 34.75% | 32.19% | |
| Sharpe ratioi | 0.46 | 0.44 | |
| Sortino ratioi | 0.65 | 0.61 | |
| Max drawdowni | 41.74% | 61.02% | |
| Current drawdowni | 8.88% | 41.21% | |
| Avg drawdowni | 12.14% | 14.28% | |
| Ulcer Indexi | 14.51% | 20.69% | |
| Max daily dropi | 27.74% | 20.32% | |
| Max wkly dropi | 26.58% | 27.41% |
| Category | CNXN | CDW |
|---|---|---|
| Company | PC Connection, Inc. | CDW Corporation |
| Sector | Technology | Technology |
| Industry | Electronics & Computer Distribution | Information Technology Services |
| Core business | PC Connection is a technology solutions company providing a wide range of IT products (PCs, servers, networking equipment, storage, peripherals, and software) along with professional services (cloud solutions, security, collaboration, data center services) to business, government, education (GOV/ED), and healthcare customers. PC Connection operates through three segments: Business Solutions (serving commercial and mid-market businesses); Enterprise Solutions (serving large enterprise and financial services companies); and Public Sector Solutions (serving government and education customers). PC Connection generated approximately $3-4 billion in net sales. As an IT products reseller, PC Connection earns gross margins in the 12-15% range on products and higher margins on professional services. | CDW Corporation is the largest U.S.-based IT solutions provider by revenue, generating $24+ billion in annual net sales. CDW provides IT products (hardware, software, cloud solutions, networking, security) and integrated IT solutions to four primary customer segments: Corporate (large and mid-size businesses); Small Business (companies with fewer than 250 employees); Public (government, education, healthcare); and Other (UK/Canada international operations). CDW serves approximately 250,000 customers annually and employs approximately 15,000 coworkers. CDW's scale provides significant purchasing advantages with tier-1 manufacturers (Dell, HP, Cisco, Microsoft, Apple); CDW is one of the largest channels for these manufacturers' products. |
| Investor focus | Investors track PC Connection's net sales growth across segments (particularly the premium-margin enterprise and public sector segments), gross margin trajectory as services mix increases, and capital returns (dividends and share buybacks). | Investors track CDW's net revenue growth across segments, gross margin stability (typically 18-20% as services mix grows), non-GAAP earnings per share growth, and cash generation (CDW uses free cash flow for dividends, buybacks, and acquisitions). |
- Specialized segment structure serves distinct customer types effectively — PC Connection's three segments (business, enterprise, public sector) allow dedicated sales teams and specialized expertise for each customer type; government and education customers have different procurement processes, contract vehicles, and budget cycles that PC Connection specializes in
- Public sector (GOV/ED) business provides stable recurring demand with government procurement contracts — government and education institutions purchase IT equipment and services through multi-year contract vehicles (state contracts, GSA schedules, NASPO); these contracts provide PC Connection with a defined pipeline of government IT spending
- Small and mid-size company scale allows faster customer responsiveness and relationship-based service vs. large distributors — PC Connection's smaller scale relative to CDW creates customer intimacy; account managers can be more responsive and develop deeper relationships with mid-size business customers
- Scale advantages in purchasing power and manufacturer relationships provide competitive cost advantages — CDW's $24B+ revenue makes it one of the largest customers for Dell, HP, Cisco, and Microsoft; this scale provides preferential pricing, priority product allocation (critical during shortages), marketing development funds, and early access to new products
- Multi-channel sales model (field sales, inside sales, e-commerce) serves all customer types efficiently — CDW's hybrid sales model allows it to serve large enterprise customers through dedicated account executives, mid-market customers through inside sales, and small businesses through online self-service; this versatility is difficult for smaller competitors to replicate
- Services revenue growth (professional services, managed services, cloud) improves gross margin quality — services carry significantly higher gross margins than product reselling; CDW's growing services attach rate on product deals improves overall profitability; services also increase customer stickiness
- PC Connection is significantly smaller than CDW, limiting scale advantages in purchasing and operations — PC Connection's $3-4B revenue is approximately 1/6th of CDW's $24B+; smaller scale means less purchasing leverage with manufacturers (HP, Dell, Cisco, Microsoft), potentially higher unit costs
- IT spending cycles affect revenue — PC Connection's revenue is highly correlated with corporate IT spending cycles; when companies reduce IT budgets (recession, cost-cutting), PC Connection's product revenue declines; services mix reduces but doesn't eliminate this cyclicality
- Margin pressure from online competition (Amazon Business, direct manufacturer sales) — large IT buyers can purchase directly from manufacturer websites or Amazon Business; PC Connection must provide value-added services, specialized support, and contract vehicle access to justify its role
- Large scale creates difficulty accelerating growth rates — CDW's $24B baseline requires adding $2+ billion in new revenue annually to achieve 8-10% growth; at this scale, meaningful revenue acceleration is difficult
- Dependence on IT spending cycles — CDW's revenue is significantly correlated with enterprise IT capital spending; macroeconomic downturns reduce corporate IT budgets, directly impacting CDW's revenue; 2023 saw IT spending headwinds as companies moderated post-COVID excess purchases
- Competition from direct manufacturer online stores and Amazon Business — manufacturers increasingly sell direct to large enterprise customers; Amazon Business serves small and mid-size purchasing efficiently; CDW must continuously demonstrate value (solution expertise, account management, contract vehicles) to justify its intermediary role
Compare more than two at a time
This page is a fixed writeup on CNXN and CDW. Our comparison engine is the interactive version: load up to five tickers, switch timeframes, and get the correlation, drawdown, and overlap analysis that a static page can't show.
Add three more names beside CNXN and CDW, mixing stocks and ETFs in the same table — useful when the real question is which of a whole peer group to own.
AI score, forward P/E, analyst target upside, operating margin, and revenue growth are scored head-to-head, with a running tally of which ticker leads on how many metrics.
Volatility, Sharpe and Sortino ratios, maximum, current, and average drawdown, Ulcer Index, and worst single-day and single-week drops across every timeframe.
Pairwise daily-return correlation for every combination, so you can see whether two holdings actually diversify each other or just move together.
A scatter plot of forward P/E against return on equity, plus drawdown and 30-day rolling volatility charts, to separate what is cheap from what is merely beaten down.
For ETFs, a top-holdings comparison that exposes hidden overlap between funds. Every comparison exports to CSV for your own spreadsheet work.
Two comparisons a week are free without an account. A 14-day trial removes the limit and adds AI price forecasts, stock rankings, saved watchlists, and the intrinsic value calculator — no credit card required.
Want deeper AI forecasts?
This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.