Chegg vs Chewy Which Is More Favorable?

Chegg and Chewy are two popular e-commerce companies that have been making waves in the stock market. Chegg, founded in 2005, is known for its online textbook rental and study services, while Chewy, founded in 2011, is an online retailer of pet supplies. Both companies have seen significant growth in recent years, but their stocks have performed differently. Chegg's stock has been on a steady upward trend, while Chewy's stock has been more volatile. In this comparison, we will analyze the factors contributing to the performance of Chegg vs Chewy stocks.

Chegg or Chewy?

When comparing Chegg 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 Chegg 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. Chegg 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. Chegg 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 Chegg P/E ratio at -0.28 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. Chegg P/B ratio is 1.23 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, Chegg has seen a 5-year revenue growth of 1.17%, while Chewy's is 1.89%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chegg's ROE at -133.62% and Chewy's ROE at 86.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $2.09 for Chegg and $31.73 for Chewy. Over the past year, Chegg's prices ranged from $1.34 to $11.48, with a yearly change of 756.72%. 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.