CDW vs TD: How CDW Corporation and The Toronto-Dominion Bank Compare (2026)

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: CDW is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. CDW and TD share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined CDW and TD exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

CDW Corporation is a multi-brand provider of information technology solutions, founded in 1984 and headquartered in Vernon Hills, Illinois. It sells hardware (notebooks, servers, storage, networking gear), software licensing, cloud subscriptions and a growing layer of its own services, sourcing from more than 1,000 vendors including Dell, HP, Lenovo, Cisco, Microsoft, Apple and NVIDIA. Revenue is reported through Corporate (~$9.4B in 2025), Public covering government, education and healthcare (~$8.5B), Small Business (~$1.7B) and Other, which is the UK and Canadian operations. CDW does not manufacture anything: its economics come from scale purchasing, a large account-manager and solution-architect salesforce, and attaching services and configuration work to product it moves.

Full CDW guide

The Toronto-Dominion Bank is one of Canada's largest banks, with roughly $2 trillion in assets and a franchise that spans both sides of the border. It reports in four segments: Canadian personal and commercial banking, US retail banking, wealth management and insurance, and wholesale banking (TD Securities). More than half of its revenue comes from Canada, where it holds leading market share across most banking products, while its US retail bank gives it one of the larger branch networks on the East Coast. TD is also a long-standing dividend payer, and management targets a payout ratio in the 40 to 50 percent range of adjusted earnings, so income is a meaningful part of the total-return case.

Full TD guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• CDW drivers: Refresh cycle and AI-adjacent hardware demand; Mix shift toward services and recurring revenue.
• TD drivers: Dominant Canadian retail franchise; AML remediation and the US asset cap.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Gross margin is the central pressure point: hardware-heavy growth mechanically compresses reported margin because software and cloud revenue is netted down, and management guided second-half 2026 gross margin below the prior year. For TD, the central risk is regulatory: the US asset cap limits growth in a key market, and the OCC can require further reductions in US assets each year TD fails to meet its remediation and compliance obligations, so execution on the AML program is critical.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick CDW if you believe its drivers more; TD if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the CDW and TD guides.

CDW. CDW trades at a mid-teens forward multiple, well below the broader technology sector, which reflects its channel economics (thin gross margin, high asset turns) rather than software-like profitability. The Q2 2026 report beat on revenue and EPS but the stock fell roughly 9% to 12% on the day because gross profit came in below expectations and the company guided second-half margin lower. Shares sit near $140 against a 52-week range of roughly $97 to $173, with a beta near 0.9.

TD. Figures are approximate and tied to the asOf date; verify live numbers before acting. TD trades more on the trajectory of its US remediation and the durability of its Canadian franchise and dividend than on any single quarter's result. A bank's reported earnings can swing with loan-loss provisions and one-time items, so directional trends in net interest income, credit quality, and remediation progress matter more than a headline multiple. TD is Canadian-listed as well as NYSE-listed, so results are reported in Canadian dollars and currency moves affect US-dollar returns.

Headline figures (approximate, August 2026): CDW shows revenue (ttm) ~$23.5B, q2 2026 net sales ~$6.57B (+10% YoY), q2 2026 non-gaap eps ~$2.91 (+12% YoY), q2 2026 gross margin ~20.1% (down ~70 bps YoY); TD shows scale One of Canada's two largest banks, with approximately $2 trillion in total assets, business mix Four segments: Canadian P&C banking, US retail banking, wealth and insurance, and wholesale (TD Securities); more than half of revenue from Canada, recent earnings direction Record group earnings in recent quarters, with notable strength in wholesale and wealth; US retail constrained by the asset cap and remediation costs, dividend A core part of the return; management targets an approximately 40 to 50 percent payout of adjusted earnings and has continued to raise the dividend.

CDW and TD are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined CDW and TD exposure against your real portfolio. It is not an investment adviser.