Chewy vs Five Below Which Outperforms?

Chewy and Five Below are two popular stocks in the retail industry that cater to different markets. Chewy is an online pet retailer known for its wide selection of pet products and convenient delivery options. In contrast, Five Below is a brick-and-mortar discount retailer that offers trendy items at affordable prices. Both companies have seen growth in recent years, but investors may want to consider factors such as market trends, competition, and overall financial performance when deciding between these two stocks.

Chewy or Five Below?

When comparing Chewy and Five Below, 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 Five Below.

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 Five Below 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, Five Below 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 Five Below's P/E ratio at 21.31. 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 Five Below's P/B ratio is 3.54.

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 Five Below's is 1.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chewy's ROE at 86.77% and Five Below's ROE at 16.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $31.73 for Chewy and $101.64 for Five Below. Over the past year, Chewy's prices ranged from $14.69 to $39.10, with a yearly change of 166.26%. Five Below's prices fluctuated between $64.87 and $216.18, with a yearly change of 233.25%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.