Canadian Tire vs Chewy Which Performs Better?

Canadian Tire Corporation, a well-known retail company in Canada, and Chewy Inc, a popular online pet supply retailer, are two companies with contrasting business models and stock performance. Canadian Tire offers a diverse range of products, while Chewy focuses solely on pet supplies. Both companies have experienced growth in recent years, but Canadian Tire has a longer history and larger presence in the Canadian market. Investors may need to consider factors such as sector trends, competition, and financial performance when deciding between Canadian Tire and Chewy stocks.

Canadian Tire or Chewy?

When comparing Canadian Tire 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 Canadian Tire 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. Canadian Tire has a dividend yield of 5.0%, while Chewy has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Canadian Tire reports a 5-year dividend growth of 10.27% year and a payout ratio of 40.53%. 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 Canadian Tire P/E ratio at 9.07 and Chewy's P/E ratio at 37.81. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Canadian Tire P/B ratio is 1.31 while Chewy's P/B ratio is 68.40.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Canadian Tire has seen a 5-year revenue growth of 0.25%, while Chewy's is 1.89%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canadian Tire's ROE at 15.38% and Chewy's ROE at 86.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $100.48 for Canadian Tire and $33.98 for Chewy. Over the past year, Canadian Tire's prices ranged from $91.50 to $120.47, with a yearly change of 31.66%. Chewy's prices fluctuated between $14.69 and $40.09, with a yearly change of 172.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.