Best Buy vs Chewy Which Offers More Value?

Best Buy and Chewy are both well-known companies in the retail industry, but they specialize in different sectors - Best Buy in consumer electronics and Chewy in pet products. When it comes to their respective stocks, investors may see differences in growth potential, financial performance, and market stability. Best Buy, a more established company, may offer more stability and established brand recognition, while Chewy, a newer player in the market, may have higher growth potential due to the increasing demand for pet products. Ultimately, the decision between investing in Best Buy vs Chewy stocks will depend on an individual's investment goals and risk tolerance.

Best Buy or Chewy?

When comparing Best Buy 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 Best Buy 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. Best Buy has a dividend yield of 4.24%, while Chewy has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Best Buy reports a 5-year dividend growth of 15.38% year and a payout ratio of 63.39%. 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 Best Buy P/E ratio at 14.98 and Chewy's P/E ratio at 32.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Best Buy P/B ratio is 5.23 while Chewy's P/B ratio is 58.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Best Buy has seen a 5-year revenue growth of 0.47%, while Chewy's is 1.89%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Best Buy's ROE at 39.46% and Chewy's ROE at 86.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $88.10 for Best Buy and $30.92 for Chewy. Over the past year, Best Buy's prices ranged from $69.29 to $103.71, with a yearly change of 49.68%. 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.