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CDW Corporation (CDW) vs UnitedHealth Group Incorporated (UNH): Which Is the Better Buy in 2026?

As of 2026-08-03, CDW is undervalued at $148, with a DCF intrinsic value of $24113529253 and a margin of safety of 100%. UNH is overvalued at $414, with an intrinsic value of $371 and a margin of safety of -12%. Of the two, CDW has the wider margin of safety.

CDW
CDW Corporation
$147.81
VS
UNH
UnitedHealth Group Incorporated
$414.40

Rewards

CDW
  • ★CDW Corporation has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★CDW Corporation scores 79/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
  • ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.
UNH
  • ★UnitedHealth Group Incorporated scores 73/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.

Risks

CDW
  • ⚠Gross margin of 21.6% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠High leverage (2.18x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • ⚠Altman Z-Score of 1.72 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
UNH
  • ⚠ROIC has declined by 6.9 percentage points over the past 4 years, which may signal competitive erosion.
  • ⚠Gross margin of 19.5% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠FCF yield of 6.0% suggests reasonable valuation assuming continued moderate growth.

Key Valuation Metrics

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CDW
UNH
Valuation
$884.10M
Free Cash Flow
$22.76B
N/A
FCF Yield
6.05%
18.03
Trailing P/E
31.25
12.55
Forward P/E
18.47
Quality & Moat
13.77%
ROIC
14.15%
44.16%
ROE
14.15%
21.57%
Gross Margin
19.51%
1.33
PEG Ratio
1.28
Balance Sheet Safety
2.18
Net Debt / Equity
0.40
N/A
Interest Coverage
N/A
2.81
Net Debt / EBITDA
1.73
1.70%
Dividend Yield
2.24%
CDW: 4Ties: 3UNH: 4
CDWUNH

Historical Fundamentals

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CDW

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

UNH

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$1 Retained Earnings Test

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CDW
$-0.00
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$2.27B
Δ Market Cap
$-42.38
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
UNH
$-7.37
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$26.63B
Δ Market Cap
$-196.16B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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CDW
100.0% Margin of Safety
Price is 100.0% below estimated fair value
Current Price: $147.81
Fair Value: $24113529252.64
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
UNH
11.7% Overvalued
Price is 11.7% above estimated fair value
Current Price: $414.40
Fair Value: $370.88
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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CDW

What growth rate is the market pricing in at $148?

-13.9%
Market-Implied Owner Earnings Growth
Standard FCF implies -8.6%

The market implies -13.9% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding -8.6%, reflecting heavy growth investment expected to generate future returns.

UNH

What growth rate is the market pricing in at $414?

+14.4%
Market-Implied Owner Earnings Growth
Standard FCF implies +6.6%

The market implies +14.4% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +6.6%, reflecting heavy growth investment.

Economic Moat Score

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CDW
79/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by margin stability. Revenue Predictability is the area most vulnerable to competitive pressure.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
UNH
73/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

Forensic Accounting

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CDW
-2.31
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
UNH
-2.45
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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CDW
Insiders 0.4%Institutions 103.8%
No. of Institutional Holders1,095
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
UNH
Insiders 0.2%Institutions 86.1%Retail & Other 13.6%
No. of Institutional Holders4,164
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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CDW
2
Buys (3M)
2
Buys (12M)
Total value (12M): $2.51M
NELMS DAVID W
Director
$2.01M
@ $111.43 · 2026-05-27
LEAHY CHRISTINE A
Chief Executive Officer
$499,398
@ $103.40 · 2026-05-18
Open market purchases · includes direct & indirect ownership · excludes option exercises
UNH
0
Buys (3M)
0
Buys (12M)
REX JOHN F
President
$5.00M
@ $291.12 · 2025-05-16
HEMSLEY STEPHEN J
Chief Executive Officer
$25.02M
@ $288.57 · 2025-05-16
GIL KRISTEN
Director
$1.00M
@ $271.17 · 2025-05-15
FLYNN TIMOTHY PATRICK
Director
$491,786
@ $320.80 · 2025-05-14
NOSEWORTHY JOHN H
Director
$93,647
@ $312.16 · 2025-05-14
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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CDW
0
Sells (3M)
1
Sells (12M)
Total value (12M): $1.08M
CHAWLA SONA
Officer
$1.08M
@ $146.17 · 2025-12-08
KULEVICH FREDERICK J.
Officer
$5.38M
@ $190.90 · 2025-05-13
LEAHY CHRISTINE A
Chief Executive Officer
$7.42M
@ $181.42 · 2025-05-08
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
UNH
0
Sells (3M)
1
Sells (12M)
Total value (12M): $284,000
CONWAY PATRICK HUGH
Officer
$284,000
@ $355.00 · 2026-04-23
CONWAY PATRICK HUGH
Chief Executive Officer
$179,645
@ $305.00 · 2025-06-10
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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CDW
FearGreed
😐Neutral(49/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
UNH
FearGreed
😐Neutral(57/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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CDW
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (49)
UNH
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (57)
View CDW Full AnalysisView UNH Full Analysis

Frequently Asked Questions: CDW vs UNH

Is CDW Corporation or UnitedHealth Group Incorporated more undervalued in 2026?▼

Based on our discounted cash flow model, CDW trades at a 100.0% margin of safety (intrinsic value $24113529253 vs. price $148), compared to UNH's -11.7% margin of safety (intrinsic $371 vs. $414).

Which stock has a wider economic moat, CDW Corporation or UnitedHealth Group Incorporated?▼

CDW scores 79/100 (Wide moat), while UNH scores 73/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is CDW Corporation in financial distress?▼

CDW's Altman Z-Score of 1.7 places it in the Distress zone, signaling elevated bankruptcy risk. UNH scores 2.9 (Grey zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which stock has higher return on invested capital, CDW Corporation or UnitedHealth Group Incorporated?▼

UNH earns 14.1% ROIC versus CDW's 13.8%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, CDW Corporation's or UnitedHealth Group Incorporated's?▼

CDW's dividend earns a safety score of 85/100 (Very Safe), compared to UNH's 84/100 (Very Safe). CDW has raised its dividend for 0 consecutive years.