Amazon.com vs Chewy

Amazon.com and Chewy are two e-commerce giants that have taken the market by storm in recent years. While Amazon dominates the overall online retail space, Chewy has carved out a niche for itself as a leading pet supplies retailer. Both companies have experienced significant growth and success, leading investors to closely compare their stocks. This comparison is not only about financial performance, but also about market positioning and growth potential in the competitive e-commerce landscape.

Amazon.com or Chewy?

When comparing Amazon.com and Chewy, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Amazon.com and Chewy.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Amazon.com has a dividend yield of -%, while Chewy has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amazon.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Chewy reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Amazon.com P/E ratio at 44.14 and Chewy's P/E ratio at 34.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amazon.com P/B ratio is 8.29 while Chewy's P/B ratio is 25.46.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amazon.com has seen a 5-year revenue growth of 1.33%, while Chewy's is 1.89%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.20% and Chewy's ROE at 71.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $184.58 for Amazon.com and $28.26 for Chewy. Over the past year, Amazon.com's prices ranged from $118.35 to $201.20, with a yearly change of 70.00%. Chewy's prices fluctuated between $14.69 and $39.10, with a yearly change of 166.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.