CDW (NASDAQ:CDW – Get Free Report) and AmpliTech Group (NASDAQ:AMPG – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.
Insider & Institutional Ownership
93.2% of CDW shares are owned by institutional investors. Comparatively, 11.0% of AmpliTech Group shares are owned by institutional investors. 0.8% of CDW shares are owned by company insiders. Comparatively, 17.1% of AmpliTech Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares CDW and AmpliTech Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CDW | $22.42 billion | 0.75 | $1.07 billion | $8.32 | 16.10 |
| AmpliTech Group | $23.99 million | 3.72 | -$7.01 million | ($0.34) | -8.74 |
CDW has higher revenue and earnings than AmpliTech Group. AmpliTech Group is trading at a lower price-to-earnings ratio than CDW, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations for CDW and AmpliTech Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CDW | 0 | 3 | 5 | 1 | 2.78 |
| AmpliTech Group | 1 | 0 | 1 | 0 | 2.00 |
CDW currently has a consensus price target of $150.12, suggesting a potential upside of 12.10%. AmpliTech Group has a consensus price target of $7.00, suggesting a potential upside of 135.69%. Given AmpliTech Group’s higher possible upside, analysts clearly believe AmpliTech Group is more favorable than CDW.
Volatility and Risk
CDW has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, AmpliTech Group has a beta of -0.26, indicating that its share price is 126% less volatile than the S&P 500.
Profitability
This table compares CDW and AmpliTech Group’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% |
| AmpliTech Group | -33.37% | -19.55% | -14.76% |
Summary
CDW beats AmpliTech Group on 12 of the 15 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 AmpliTech Group
AmpliTech Group, Inc. designs, engineers, and assembles micro-wave component-based amplifiers. The company’s products include radio frequency (RF) amplifiers and related subsystems, such as low noise amplifiers for use in receivers of various communication systems comprising Wi-Fi, radar, satellite, base station, cell phone, radio, etc.; and medium power amplifiers that provide enhanced output power and gain in transceiver chains. It provides specialty microwave block downconverters used as a test device on satellite access point antennas; specialty microwave 1:2 Tx protection switch panels that is used in satellite communication earth stations; desktop/benchtop and compact wideband power amplifiers used in SATCOM rack mount systems, as well as test equipment used in integrators and manufacturers of various communications systems, such as cellular base stations, simulators, and point to point wireless radios; and waveguide to coaxial adapters for SATCOM and satellite internet gateway systems. In addition, the company offers cryogenic amplifiers for quantum computing, medical, RF imaging, research and development, space communications, accelerators, radiometry, and telephony applications; and cryogenic and non-cryogenic 4g/5g small cell subsystems for high-speed networks and airline Wi-Fi systems. Further, it provides custom assembly designs and non-recurring engineering services on a project-by-project basis, as well as IC packaging and lids products. The company serves aerospace, government, defense, commercial satellite, and wireless industries through sales representatives and distributors in the United States, Europe, the Middle East, and South Asia. AmpliTech Group, Inc. was founded in 2002 and is based in Hauppauge, New York.
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