AutoZone vs Chewy Which Is More Favorable?

AutoZone and Chewy are two companies operating in different sectors of the market, but both have seen significant growth in their stock prices in recent years. AutoZone is a retailer of automotive parts and accessories, while Chewy is an online pet supply retailer. Investors may be considering these two stocks as potential investment opportunities due to their strong performance and market potential. In this comparison, we will analyze the financial health, growth prospects, and potential risks of investing in AutoZone versus Chewy stocks.

AutoZone or Chewy?

When comparing AutoZone 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 AutoZone 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. AutoZone 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. AutoZone 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 AutoZone P/E ratio at 21.83 and Chewy's P/E ratio at 33.36. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AutoZone P/B ratio is -12.24 while Chewy's P/B ratio is 60.35.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AutoZone has seen a 5-year revenue growth of 1.27%, while Chewy's is 1.89%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AutoZone's ROE at -54.23% and Chewy's ROE at 86.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3339.95 for AutoZone and $31.41 for Chewy. Over the past year, AutoZone's prices ranged from $2510.00 to $3416.71, with a yearly change of 36.12%. 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.