Critical Review: BOE Varitronix (OTCMKTS:VARXF) versus CDW (NASDAQ:CDW)

CDW (NASDAQ:CDW) and BOE Varitronix (OTCMKTS:VARXF) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Valuation and Earnings

This table compares CDW and BOE Varitronix”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CDW	$22.42 billion	0.83	$1.07 billion	$8.32	17.91
BOE Varitronix	N/A	N/A	N/A	N/A	N/A

CDW has higher revenue and earnings than BOE Varitronix.

Profitability

This table compares CDW and BOE Varitronix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CDW	4.60%	50.61%	7.91%
BOE Varitronix	N/A	N/A	N/A

Institutional & Insider Ownership

93.2% of CDW shares are owned by institutional investors. Comparatively, 14.3% of BOE Varitronix shares are owned by institutional investors. 0.8% of CDW shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for CDW and BOE Varitronix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CDW	0	3	5	1	2.78
BOE Varitronix	0	0	0	0	0.00

CDW presently has a consensus price target of $147.00, indicating a potential downside of 1.32%. Given CDW’s stronger consensus rating and higher possible upside, research analysts clearly believe CDW is more favorable than BOE Varitronix.

Summary

CDW beats BOE Varitronix on 10 of the 10 factors compared between the two stocks.

About CDW

CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. It also provides hardware products comprising notebooks/mobile devices, tablets, network communications, desktop computers, collaboration, data storage and servers, and others; and software products, such as cloud solutions, software assurance, application suites, security, virtualization, operating systems, and network management. In addition, the company offers advisory and design, software development, implementation, managed, professional, configuration, partner, and telecom services, as well as warranties; delivers and manages mission critical software, systems, and network solutions; and implementation and installation, and repair services to its customers through various third-party service providers. It serves government, education, and healthcare customers; and small, medium, and large business customers. CDW Corporation was founded in 1984 and is headquartered in Vernon Hills, Illinois.

About BOE Varitronix

BOE Varitronix Limited, an investment holding company, designs, manufactures, and sells liquid crystal display and related products in the People’s Republic of China, Europe, the United States, Korea, and internationally. It primarily provides thin film transistor products. The company offers display products for use in automotive applications in digital instrument cluster display, center information display, HUD, rear view, and side view E-mirror products; and products for use in industrial applications, such as white goods, home automation, and other products. In addition, the company engages in the marketing and sales consulting activities. BOE Varitronix Limited was founded in 1978 and is headquartered in Kwun Tong, Hong Kong. BOE Varitronix Limited is a subsidiary of BOE Technology Group Company Limited.