Reviewing Poshmark (NASDAQ:POSH) and CDW (NASDAQ:CDW)

CDW (NASDAQ:CDW) and Poshmark (NASDAQ:POSH) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Earnings & Valuation

This table compares CDW and Poshmark’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CDW $18.47 billion 1.30 $788.50 million $6.55 26.57
Poshmark $262.08 million 7.17 $16.84 million $1.25 19.71

CDW has higher revenue and earnings than Poshmark. Poshmark is trading at a lower price-to-earnings ratio than CDW, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

93.7% of CDW shares are held by institutional investors. Comparatively, 13.4% of Poshmark shares are held by institutional investors. 1.0% of CDW shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for CDW and Poshmark, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CDW 0 2 3 0 2.60
Poshmark 0 4 8 0 2.67

CDW currently has a consensus price target of $192.20, suggesting a potential upside of 10.45%. Poshmark has a consensus price target of $53.70, suggesting a potential upside of 117.94%. Given Poshmark’s stronger consensus rating and higher possible upside, analysts plainly believe Poshmark is more favorable than CDW.

Profitability

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

Net Margins Return on Equity Return on Assets
CDW 4.76% 87.83% 11.41%
Poshmark N/A N/A N/A

Summary

CDW beats Poshmark on 9 of the 13 factors compared between the two stocks.

About CDW

CDW Corp. engages in the provision of information technology solutions to small, medium and large business, government, education and healthcare customers in the United States, the United Kingdom and Canada. It operates through the following segments: Corporate, Small Business, and Public. The Corporate segment serves the private sector business customers. The Small Business segment also caters to the private sector businesses but with smaller number of employees. The Public segment involves government agencies, education, and healthcare institutions. The company was founded in 1984 by Michael P. Krasny and is headquartered in Lincolnshire, IL.

About Poshmark

Poshmark, Inc. operates as a social marketplace for new and secondhand style products in the United States, Canada, and Australia. The company offers apparel, footwear, home, beauty, and pet products, as well as accessories. As of December 31, 2020, it had 6.5 million active buyers. The company was formerly known as GoshPosh, Inc. and changed its name to Poshmark, Inc. in 2011. Poshmark, Inc. was incorporated in 2011 and is headquartered in Redwood City, California.

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