Chewy vs Cosco Which Is More Profitable?

Chewy and Costco are two popular companies in the retail industry that have been gaining attention from investors in recent years. Chewy, an online pet retailer, has experienced significant growth due to the rising trend of pet ownership. On the other hand, Costco, a wholesale club retailer, has maintained a strong presence in the market with its membership-based model and wide range of products. Both companies have their own unique strengths and weaknesses, making them interesting options for investors to consider.

Chewy or Cosco?

When comparing Chewy and Cosco, 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 Chewy and Cosco.

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. Chewy has a dividend yield of -%, while Cosco has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Chewy reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Cosco 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 Chewy P/E ratio at 32.16 and Cosco's P/E ratio at 40.02. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Chewy P/B ratio is 58.18 while Cosco's P/B ratio is 2.90.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Chewy has seen a 5-year revenue growth of 1.89%, while Cosco's is 0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chewy's ROE at 86.77% and Cosco's ROE at 10.02%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $31.05 for Chewy and ₹360.00 for Cosco. Over the past year, Chewy's prices ranged from $14.69 to $39.10, with a yearly change of 166.26%. Cosco's prices fluctuated between ₹50.75 and ₹378.40, with a yearly change of 645.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.