Chewy vs GameStop Which Performs Better?

Chewy and GameStop are two companies with vastly different business models and target markets, yet both have seen significant fluctuations in their stock prices in recent years. While Chewy is a leading online retailer of pet products, GameStop is a specialty retailer of video games and consumer electronics. Investors and analysts have been closely monitoring the performance of these two stocks to gauge market trends and consumer behavior. The contrasting trajectories of Chewy and GameStop stocks provide insights into the diverse dynamics of the retail industry.

Chewy or GameStop?

When comparing Chewy and GameStop, 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 GameStop.

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 GameStop 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, GameStop 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 38.83 and GameStop's P/E ratio at 244.02. 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 29.08 while GameStop's P/B ratio is 2.37.

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 GameStop's is -0.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chewy's ROE at 71.71% and GameStop's ROE at 2.05%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $32.80 for Chewy and $24.95 for GameStop. Over the past year, Chewy's prices ranged from $14.69 to $39.10, with a yearly change of 166.26%. GameStop's prices fluctuated between $9.95 and $64.83, with a yearly change of 551.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.