Chewy vs Sysco Which Is Stronger?

Chewy and Sysco are two companies in the food industry, but with very different business models. Chewy is an e-commerce retailer of pet food and supplies, while Sysco is a leading global distributor of food products to restaurants, hotels, and other institutions. Both companies have seen growth in recent years, but investors may be torn between the stability of Sysco's established customer base and Chewy's rapidly expanding online presence. Understanding the dynamics of each company's market and competitive landscape is key to making an informed investment decision.

Chewy or Sysco?

When comparing Chewy and Sysco, 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 Sysco.

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 Sysco has a dividend yield of 2.53%. 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, Sysco reports a 5-year dividend growth of 6.58% year and a payout ratio of 51.82%.

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 Sysco's P/E ratio at 20.26. 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 Sysco's P/B ratio is 17.83.

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 Sysco's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chewy's ROE at 86.77% and Sysco's ROE at 90.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $31.73 for Chewy and $79.24 for Sysco. Over the past year, Chewy's prices ranged from $14.69 to $39.10, with a yearly change of 166.26%. Sysco's prices fluctuated between $69.03 and $82.89, with a yearly change of 20.08%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.