How this CDW vs TYL comparison is calculated

All metrics are based on trailing twelve months (TTM) financial data, consensus analyst estimates, and standardized valuation ratios. Data is sourced from Financial Modeling Prep and SEC EDGAR. Figures are normalized to ensure a fair comparison between CDW Corporation and Tyler Technologies, Inc.. Analyst price targets and ratings are aggregated from Wall Street consensus as of 2026-05-14.

Quick verdict: CDW Corporation vs Tyler Technologies, Inc. in 2026

Tyler Technologies, Inc. emerges as the growth leader, showcasing a higher revenue expansion rate compared to CDW Corporation. For investors prioritizing valuation, CDW stock holds a distinct edge with its significantly lower earnings multiple. In terms of operational efficiency and overall profitability, Tyler Technologies, Inc. leads with impressive net and EBITDA margins. Analysts generally favor TYL, giving it a higher percentage of ‘Buy’ ratings and a marginally greater target upside, although CDW Corporation shows substantially higher DCF upside. Not investment advice.

CDW Corporation vs Tyler Technologies, Inc.: key metrics side by side

A full side-by-side look at CDW Corporation (CDW) and Tyler Technologies, Inc. (TYL) across earnings multiples, profitability, revenue momentum, and analyst sentiment — data updated 2026-05-14.

Relative valuation: CDW vs TYL

The disparity in earnings multiples between CDW Corporation and Tyler Technologies, Inc. is one of the most striking aspects of their relative valuation. CDW trades at a notably modest price-to-earnings (P/E) ratio of 12.02x, presenting a compelling case for value investors. In stark contrast, TYL commands a premium earnings multiple of 40.41x, reflecting higher market expectations for its future growth and profitability. This considerable price-to-earnings gap suggests that CDW stock offers a more attractive entry point based on its current earnings. Furthermore, examining the price-to-book (P/B) ratio, Tyler Technologies, Inc. stands at 3.59x, while CDW Corporation trades at a higher 5.07x, indicating that TYL’s assets are valued more conservatively by the market.

Beyond traditional multiples, a deeper look into intrinsic value through discounted cash flow (DCF) models reveals further insights. CDW Corporation’s calculated DCF suggests an impressive potential upside of +78.0%, leading to a target price of $178.76. This substantial fundamental discount highlights a significant margin of safety or potential for appreciation. Tyler Technologies, Inc., while also showing a positive DCF upside of +31.3% to $392.04, offers a less pronounced discount. This analysis, based on current consensus data, indicates that CDW may offer a more attractive investment from a pure valuation perspective, suggesting it is trading at a more significant discount to its estimated intrinsic worth compared to its peer.

Revenue momentum: CDW Corporation vs Tyler Technologies, Inc.

When evaluating revenue momentum, Tyler Technologies, Inc. exhibits a slightly more robust topline expansion. TYL reported a year-over-year revenue growth of +9.1%, outpacing CDW Corporation’s growth rate of +6.8%. This differential underscores Tyler Technologies, Inc.’s capability to expand its sales more quickly in its respective market segments. Although CDW operates on a much larger scale with $22.42 billion in revenue compared to TYL’s $2.33 billion, the percentage increase for Tyler Technologies, Inc. points towards a more aggressive growth trajectory in its software and services offerings.

Beyond top-line expansion, the operational efficiency, as reflected in EBITDA margins, also provides a clear distinction. Tyler Technologies, Inc. boasts a superior EBITDA margin of 21.52%, which is significantly higher than CDW Corporation’s 8.59%. This indicates that TYL is not only growing faster but also converting a larger portion of its revenue into earnings before interest, taxes, depreciation, and amortization. This stronger operational profitability suggests a more sustainable and high-quality growth profile for Tyler Technologies, Inc. The robust operational performance of TYL indicates a more favorable growth outlook in the near term, though this gap may not persist indefinitely and could vary depending on future market conditions and strategic initiatives.

Profitability and cash generation: CDW vs TYL

Analyzing the profitability metrics reveals Tyler Technologies, Inc. as a leader in net margin efficiency. TYL achieves an impressive net margin of 13.26%, demonstrating its ability to retain a significant portion of its revenue as profit. This figure is considerably higher than CDW Corporation’s net margin of 4.7%. The greater bottom-line performance of Tyler Technologies, Inc. suggests superior cost management and stronger pricing power within its business model. For investors prioritizing high-quality earnings, TYL stock presents a more compelling picture of sustained profitability.

Shifting focus to cash generation, CDW Corporation exhibits a higher free cash flow (FCF) yield of 8.39%. This figure suggests that CDW stock generates more cash relative to its market capitalization compared to Tyler Technologies, Inc., which has an FCF yield of 5.46%. While TYL leads in net profitability, CDW’s stronger cash conversion is an attractive feature for investors valuing robust liquidity and the ability to fund operations or return capital without external financing. Both companies currently report ‘N/A’ for Return on Equity (ROE), preventing a direct comparison of this metric. However, CDW Corporation’s superior free cash flow yield highlights a different strength in its financial health, focusing on the actual cash produced by the business.

Wall Street view: CDW Corporation vs Tyler Technologies, Inc. analyst ratings

The sentiment among Wall Street analysts provides further insight into investor perspectives on these two technology companies. Tyler Technologies, Inc. enjoys a slightly higher level of endorsement, with 67.6% of analysts rating TYL stock as a ‘Buy’. CDW Corporation also receives a favorable outlook, with 61.2% of analysts recommending CDW as a ‘Buy’. While both firms are generally viewed positively by market experts, Tyler Technologies, Inc. appears to garner a marginally stronger consensus, supported by a larger analyst coverage of 37 professionals compared to CDW Corporation’s 18.

In terms of price targets, analysts project a greater potential upside for Tyler Technologies, Inc. The consensus target price for TYL is $453.45, indicating a robust +51.9% upside from its current trading level. CDW Corporation’s analyst consensus target is $148.2, representing a solid +47.6% upside. This suggests that while both stocks are anticipated to deliver significant returns, Tyler Technologies, Inc. is perceived to have slightly more room for appreciation according to analyst models. It’s crucial for investors to remember that these price targets may vary depending on future estimate revisions, company performance, and broader market conditions, so they should be considered as indicative rather than definitive.

Which investor profile fits CDW vs TYL?

For a growth investor focused on expanding revenues and strong operational efficiency, Tyler Technologies, Inc. (TYL) appears to be the more suitable choice. With a revenue expansion rate of 9.1% and an impressive EBITDA margin of 21.52%, TYL demonstrates a robust growth trajectory and superior profitability. The company’s focus on software and services for the public sector positions it well for continued expansion, which aligns perfectly with the objectives of growth-oriented portfolios. CDW Corporation, while a significant player in IT solutions, shows a more moderate revenue growth of 6.8% and lower margins, making TYL the preferred option for those prioritizing aggressive top-line and earnings momentum.

Conversely, a value investor seeking fundamentally sound companies trading at attractive earnings multiples and with significant intrinsic value upside would likely lean towards CDW Corporation (CDW). CDW stock trades at a compelling P/E ratio of just 12.02x, a substantial discount compared to Tyler Technologies, Inc.’s 40.41x. Moreover, the discounted cash flow (DCF) model for CDW Corporation indicates a remarkable +78.0% upside to $178.76, suggesting it is trading well below its calculated fair value. This contrasts with TYL’s +31.3% DCF upside to $392.04. The deeper fundamental discount and more conservative valuation multiples of CDW make it a strong candidate for value-conscious investors.

Lastly, for income investors whose primary goal is to generate regular cash flow through dividends, neither CDW Corporation nor Tyler Technologies, Inc. stands out as a strong contender. CDW offers a minimal dividend yield of 0.03%, which, while technically a yield, provides a negligible return for income-focused portfolios. Tyler Technologies, Inc. currently offers no dividend whatsoever, with a 0% yield. Therefore, investors prioritizing substantial dividend payments would need to look elsewhere in the market, as both CDW and TYL are primarily focused on reinvesting earnings for growth rather than distributing them as income. This is not investment advice. Always do your own research.

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