Check Point vs CDW

This page compares Check Point and CDW, examining business models, financial performance, and market context in a neutral, accessible way. Educational content, not financial advice.

About The Companies

Check Point (CHKP)

Check Point Software Technologies Ltd. (CHKP) is an Israel‑based cybersecurity company known for firewalls, threat prevention and cloud security solutions used by enterprises and service providers. With a market capitalisation of about $21.3 billion, Check Point combines software appliances, virtual solutions and subscription services under platforms such as its Infinity architecture. Investors often note its relatively high margins, steady cash flow and a history of dividend payments, which stem from a business model that mixes perpetual licences with growing recurring revenue. Key considerations include intense competition from the likes of Palo Alto Networks, Fortinet and cloud-native security vendors, plus the need for continuous R&D to keep pace with sophisticated threats. Financially conservative investors may appreciate cash generation, but prospective buyers should remember that cybersecurity markets evolve rapidly, valuation can change, and past performance does not guarantee future returns. This information is educational and not personalised investment advice.

CDW (CDW)

CDW Corporation is a US-based provider of technology products and services that supplies hardware, software and IT solutions to business, government and education customers. With a roughly $20.5bn market capitalisation, CDW acts as a distributor and integrator—helping clients source equipment, migrate to cloud environments, secure networks and manage IT projects. Investors often watch CDW for steady demand tied to corporate IT budgets, recurring services revenue and potential margin expansion from higher-value services. Key drivers include digital transformation, hybrid cloud adoption and cybersecurity spending, while risks include intense competition, supply-chain pressures, interest-rate sensitivity for corporate spending and exposure to macroeconomic slowdowns. Past performance does not predict future returns; this is general educational information and not personalised investment advice. Suitability depends on an investor’s goals, time horizon and risk tolerance, and values can rise or fall.

Comparison Snapshot

Key Financial Metrics

CHKP

Metric

CDW

$21.31B

Market Cap

$19.51B

19.39%

Potential Profit

25.58%

Buy

Analyst Rating

Buy

Which Baskets Do They Appear In?

Work From Anywhere Kit

This carefully curated collection features companies that are building the digital backbone of remote work. Our analysts have selected leaders in cloud collaboration, cybersecurity, and digital infrastructure that are essential to the modern flexible workplace.

Published: June 17, 2025

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Which Baskets Do They Appear In?

Work From Anywhere Kit

This carefully curated collection features companies that are building the digital backbone of remote work. Our analysts have selected leaders in cloud collaboration, cybersecurity, and digital infrastructure that are essential to the modern flexible workplace.

Published: June 17, 2025

Explore Basket

Investment Analysis

Check Point

CHKP

Pros

Reported a significant Q3 2025 earnings beat with EPS of $3.94, surpassing forecasts by over 60%, and revenue growth of 7% year-over-year.
Maintains high gross profit margins of approximately 88%, indicating strong profitability and operational efficiency.
Emerging technology annual recurring revenue grew over 40%, supporting growth through innovation and product portfolio expansion.

Considerations

Does not currently pay dividends, which may deter income-focused investors.
Forward price-earnings ratio suggests potential near-term valuation risk with analysts forecasting a slight EPS decline next year.
Exposure to competitive cybersecurity market risks and execution challenges integrating acquisitions could impact future performance.

CDW

Pros

CDW benefits from a diversified IT solutions and services portfolio across multiple sectors, reducing dependence on a single segment.
Has a consistent dividend yield of around 1.57%, appealing to investors seeking income alongside growth.
Strong market position as a leading technology reseller with broad vendor partnerships enhances sales and customer retention.

Considerations

Exposure to economic cyclicality and IT spending fluctuations poses risks to revenue stability.
Margins may be pressured due to competitive pricing and cost inflation in technology distribution.
Dependence on large enterprise customers increases vulnerability to contract renewals and budgeting risks.

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Pros

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Frequently asked questions

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About The Companies

Comparison Snapshot