Chewy vs DoorDash Which Is a Smarter Choice?

Chewy and DoorDash are two popular stocks in the e-commerce and food delivery sectors, respectively. Chewy is an online pet retailer known for its wide selection of pet products and auto-ship services. DoorDash, on the other hand, is a food delivery service that has seen a surge in demand during the pandemic. Both companies have experienced significant growth in recent years, but investors may be torn between the stability of Chewy's pet industry and the potential for continued growth in DoorDash's food delivery market.

Chewy or DoorDash?

When comparing Chewy and DoorDash, 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 DoorDash.

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 DoorDash 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, DoorDash 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 33.07 and DoorDash's P/E ratio at -420.53. 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 59.83 while DoorDash's P/B ratio is 9.56.

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 DoorDash's is 20.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chewy's ROE at 86.77% and DoorDash's ROE at -2.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $31.73 for Chewy and $173.71 for DoorDash. Over the past year, Chewy's prices ranged from $14.69 to $39.10, with a yearly change of 166.26%. DoorDash's prices fluctuated between $93.33 and $181.30, with a yearly change of 94.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.