Critical Survey: Wayside Technology Group (WSTG) vs. Tech Data (TECD)

Wayside Technology Group (NASDAQ:WSTG) and Tech Data (NASDAQ:TECD) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Dividends

Wayside Technology Group pays an annual dividend of $0.68 per share and has a dividend yield of 6.1%. Tech Data does not pay a dividend.

Profitability

This table compares Wayside Technology Group and Tech Data’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wayside Technology Group 1.13% 14.10% 5.38%
Tech Data 0.59% 13.92% 3.30%

Insider and Institutional Ownership

48.9% of Wayside Technology Group shares are held by institutional investors. Comparatively, 97.1% of Tech Data shares are held by institutional investors. 12.9% of Wayside Technology Group shares are held by insiders. Comparatively, 1.1% of Tech Data shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Wayside Technology Group has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, Tech Data has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Valuation & Earnings

This table compares Wayside Technology Group and Tech Data’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wayside Technology Group $449.38 million 0.11 $5.06 million N/A N/A
Tech Data $36.78 billion 0.09 $116.64 million $9.11 9.43

Tech Data has higher revenue and earnings than Wayside Technology Group.

Analyst Recommendations

This is a breakdown of recent recommendations for Wayside Technology Group and Tech Data, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wayside Technology Group 0 0 0 0 N/A
Tech Data 1 1 4 0 2.50

Tech Data has a consensus price target of $102.83, indicating a potential upside of 19.75%. Given Tech Data’s higher possible upside, analysts plainly believe Tech Data is more favorable than Wayside Technology Group.

Summary

Tech Data beats Wayside Technology Group on 7 of the 13 factors compared between the two stocks.

Wayside Technology Group Company Profile

Wayside Technology Group, Inc. operates as an information technology channel company worldwide. It operates in two segments, Lifeboat Distribution and TechXtend. The company distributes technical software and hardware to corporate and value added resellers, consultants, and systems integrators; and software, hardware, and services for corporations, government organizations, and academic institutions. It also resells computer software and hardware developed by others, as well as provides technical services to end user customers in the United States and Canada. In addition, the company offers a line of products from various publishers of software; and tools for virtualization/cloud computing, security, networking, storage and infrastructure management, application lifecycle management, and other technically sophisticated domains, as well as computer hardware. Wayside Technology Group, Inc. markets its products through own Websites, local and online seminars, Webinars, and social media, as well as direct email and printed materials. The company was formerly known as Programmer's Paradise, Inc. and changed its name to Wayside Technology Group, Inc. in August 2006. Wayside Technology Group, Inc. was founded in 1982 and is headquartered in Eatontown, New Jersey.

Tech Data Company Profile

Tech Data Corporation engages in the wholesale distribution of technology products. It offers endpoint portfolio solutions, including PC systems, mobile phones and accessories, printers, peripherals, supplies, endpoint technology software, and consumer electronics; and advanced portfolio solutions, such as storage, networking, servers, advanced technology software, and converged and hyper-converged infrastructure, as well as specialized solutions. The company serves value-added resellers, direct marketers, retailers, and corporate resellers. Tech Data Corporation sells its products to customers in approximately 100 countries in North America, South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company was founded in 1974 and is headquartered in Clearwater, Florida.

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