ASOS vs Chewy Which Is a Better Investment?

ASOS and Chewy are two companies that operate in different sectors of the retail industry. ASOS is a UK-based online fashion retailer, while Chewy is a US-based online pet supply retailer. Both companies have experienced significant growth in recent years, with ASOS seeing a surge in demand for online fashion during the pandemic, and Chewy benefiting from increased pet ownership trends. Investors interested in these stocks may need to consider factors such as market competition, growth potential, and financial performance.

ASOS or Chewy?

When comparing ASOS 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 ASOS 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. ASOS 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. ASOS 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 ASOS P/E ratio at -1.95 and Chewy's P/E ratio at 33.07. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ASOS P/B ratio is 0.93 while Chewy's P/B ratio is 59.83.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ASOS has seen a 5-year revenue growth of 0.17%, while Chewy's is 1.89%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASOS's ROE at -43.49% and Chewy's ROE at 86.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.00 for ASOS and $31.73 for Chewy. Over the past year, ASOS's prices ranged from $4.11 to $5.89, with a yearly change of 43.31%. 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.