Quick verdict: CDW vs IT in 2026

Overall, CDW Corporation appears to have a slight edge based on a more favorable valuation and stronger current revenue growth momentum. CDW leads as the growth leader with its 6.8% YoY revenue increase, while also presenting as the value leader with lower P/E and P/B ratios. IT, however, stands out significantly as the margin leader, boasting superior net and EBITDA margins. Analysts show a clear preference for CDW, giving it a “Buy” consensus and higher percentage of Buy ratings, also assigning it a slightly higher price target upside, making it the leader for analyst-projected upside. Not investment advice.

CDW vs IT: key metrics side by side

Full side-by-side comparison of CDW and IT across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-01.

CDW vs IT valuation comparison

CDW and IT present interesting contrasts in their current valuations as of April 1, 2026. CDW Corporation trades at a P/E ratio of 14.75x, which is slightly more attractive than Gartner, Inc.’s P/E of 15.63x, suggesting CDW’s earnings are valued a bit lower by the market on a per-share basis. The disparity becomes much more pronounced when examining the Price-to-Book (P/B) ratio. CDW holds a P/B of 6.04x, indicating a reasonable valuation relative to its tangible assets and equity. In stark contrast, IT’s P/B ratio stands at a significantly higher 35.64x, which could imply that the market perceives IT as a company with far greater intangible assets, brand value, or future earnings power not captured by its book value, or it could suggest a more stretched valuation from a book perspective.

However, when we look at the discounted cash flow (DCF) models, a different picture of potential value emerges in this CDW vs IT valuation. CDW’s DCF analysis suggests an upside of +44.3% from its current price of $121.02, indicating that the intrinsic value is estimated to be around $174.62. Gartner, Inc. (IT), on the other hand, shows a much more substantial DCF upside of +152.4% from its current price of $158.34, implying a significantly higher intrinsic value estimate of $399.58. This suggests that while CDW appears cheaper on traditional multiples like P/E and P/B, IT could offer considerably more long-term value if it achieves its projected cash flows, making it a potential deep value play based on DCF, despite its higher multiples.

CDW vs IT growth comparison

When evaluating CDW vs IT growth, CDW Corporation demonstrates stronger current revenue growth momentum. CDW reported a revenue growth rate of +6.8% year-over-year, reaching $22.42 billion in TTM revenue. This indicates a robust demand for its technology products and services, reflecting its position in the IT solutions market and its ability to capture new business or expand existing client relationships. This growth rate is notably higher than that of Gartner, Inc., which recorded a more modest revenue growth of +3.7% year-over-year, with TTM revenue totaling $6.50 billion. CDW’s larger revenue base coupled with its faster growth rate suggests a company expanding its market presence and sales at a quicker pace.

The difference in growth rates could be attributed to the nature of their businesses. CDW is a provider of integrated IT solutions, often benefiting from ongoing enterprise IT infrastructure investments, digital transformation initiatives, and technology refresh cycles. Gartner, Inc., conversely, primarily operates in IT research and advisory services, a sector that can be more influenced by broader economic cycles affecting corporate discretionary spending on consulting and intelligence. While both operate within the broader technology sector, CDW’s current trajectory suggests stronger immediate top-line expansion, positioning it favorably for investors prioritizing revenue growth and market share gains within the CDW vs IT fundamentals and valuation comparison.

CDW vs IT profitability

The profitability comparison between CDW and IT reveals a significant divergence, with Gartner, Inc. demonstrating superior efficiency and margin strength. IT boasts an impressive net margin of 11.22%, indicating that a much larger portion of its revenue translates into net income compared to CDW Corporation, which reported a net margin of 4.76%. This substantial difference highlights IT’s business model, likely characterized by higher value-added services, recurring revenue streams, and lower operational costs relative to its revenue. Similarly, IT’s EBITDA margin stands at 18.92%, nearly double that of CDW’s 8.7%, further reinforcing its operational efficiency and ability to generate profits before accounting for interest, taxes, depreciation, and amortization.

In terms of cash generation, Gartner, Inc. also takes the lead. IT’s Free Cash Flow (FCF) yield is a healthy 10.3%, suggesting it generates a significant amount of cash relative to its market capitalization, which is highly attractive for investors looking for strong cash flow and financial flexibility. CDW’s FCF yield is respectable at 6.91%, but it doesn’t quite match IT’s cash-generating prowess. It’s important to note that the Return on Equity (ROE) for both companies is N/A%, limiting a direct comparison on this specific metric. Despite this, IT’s higher margins across the board and superior FCF yield clearly position it as the more profitable entity in this CDW vs IT stock comparison 2026.

Analyst ratings: CDW vs IT

When examining analyst sentiment for CDW vs IT, there’s a clear preference for CDW Corporation among the financial community. Of the 18 analysts covering CDW, a significant 61.2% have issued a “Buy” rating for the stock, culminating in a strong “Buy” consensus. The average analyst price target for CDW is $162.4, representing a substantial potential upside of +34.2% from its current price of $121.02. This collective optimism suggests that analysts anticipate strong future performance, believe the company is well-positioned in its market, and see the stock as undervalued at its current levels.

Gartner, Inc. (IT), while also covered by 18 analysts, receives a more cautious reception. Only 38.9% of analysts recommend a “Buy,” leading to a more moderate “Hold” consensus. The average analyst price target for IT is $206.3, which indicates an upside of +30.3% from its current price of $158.34. While this still represents a healthy potential return for existing shareholders and new investors, it is slightly lower than CDW’s projected upside and reflects a less enthusiastic outlook from the analyst community compared to its peer. The difference in “Buy” ratings and consensus indicates that, for investors weighing analyst recommendations, CDW appears to be the more favored choice in the current market environment.

Should I buy CDW or IT stock in 2026?

Deciding whether to buy CDW or IT stock in 2026 depends heavily on an investor’s specific objectives and risk tolerance, especially when considering the “should i buy cdw or it stock 2026” question. For growth-oriented investors, CDW Corporation currently presents a more compelling narrative due to its stronger year-over-year revenue growth of 6.8% compared to IT’s 3.7%. This indicates CDW’s ability to expand its top-line faster, potentially leading to greater market share gains and future earnings growth, aligning with a strategy focused on dynamic business expansion within the technology sector.

For value investors, CDW appears to offer a more attractive entry point based on traditional valuation multiples. Its P/E ratio of 14.75x is slightly lower than IT’s 15.63x, and its P/B ratio of 6.04x is significantly more conservative than IT’s 35.64x. This suggests CDW may be trading at a more reasonable price relative to its earnings and book assets. However, IT’s impressive DCF upside of +152.4% vastly outweighs CDW’s +44.3%, hinting at a potentially deeply undervalued stock if its future cash flow projections are realized. This dichotomy means value investors must weigh current multiples against long-term intrinsic value potential when considering CDW vs IT fundamentals and valuation.

Regarding income, CDW offers a modest dividend yield of 0.02%, while Gartner (IT) currently provides no dividend (0%). Therefore, for investors seeking any form of immediate income from their stock holdings, CDW would be the preferred, albeit minimal, choice. Overall, CDW might appeal to those seeking a balance of growth and value with strong analyst backing, while IT could attract investors willing to bet on its robust profitability and significant long-term DCF upside, despite its higher current valuation multiples and slower immediate revenue growth. This is not investment advice; always conduct your own thorough research.

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FAQ: CDW vs IT