Chewy vs Freshpet Which Is More Favorable?

Chewy and Freshpet are two companies in the pet industry that have gained significant attention from investors in recent years. Chewy is an online retailer of pet food and supplies, while Freshpet focuses on providing fresh, refrigerated pet food products. Both companies have seen impressive growth, but their stocks have performed differently. Chewy has experienced rapid expansion and a loyal customer base, while Freshpet has faced challenges in scaling their operations. Investors should consider the unique factors influencing each company's stock performance before making investment decisions.

Chewy or Freshpet?

When comparing Chewy and Freshpet, 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 Freshpet.

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 Freshpet 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, Freshpet reports a 5-year dividend growth of 0.00% year and a payout ratio of 738.97%.

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 38.83 and Freshpet's P/E ratio at 170.61. 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 29.08 while Freshpet's P/B ratio is 7.36.

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 Freshpet's is 1.91%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chewy's ROE at 71.71% and Freshpet's ROE at 4.47%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $32.80 for Chewy and $154.31 for Freshpet. Over the past year, Chewy's prices ranged from $14.69 to $39.10, with a yearly change of 166.26%. Freshpet's prices fluctuated between $68.14 and $159.12, with a yearly change of 133.52%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.