Chewy vs UnitedHealth Which Is a Smarter Choice?

Chewy Inc. and UnitedHealth Group Incorporated are two well-known companies in the stock market with distinct business operations. Chewy is an online retailer specializing in pet products, while UnitedHealth is a diversified health care company. Both companies have shown strong performance in recent years, but their stock prices have fluctuated due to various market factors. Investors looking for stability may be drawn to UnitedHealth's consistent growth, while those seeking high-growth opportunities may prefer Chewy's potential for expansion in the pet industry.

Chewy or UnitedHealth?

When comparing Chewy and UnitedHealth, 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 UnitedHealth.

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 UnitedHealth has a dividend yield of 2.26%. 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, UnitedHealth reports a 5-year dividend growth of 0.00% year and a payout ratio of 51.26%.

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 32.67 and UnitedHealth's P/E ratio at 1.12. 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 59.11 while UnitedHealth's P/B ratio is 0.17.

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 UnitedHealth's is 0.70%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chewy's ROE at 86.77% and UnitedHealth's ROE at 15.94%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $31.57 for Chewy and C$24.55 for UnitedHealth. Over the past year, Chewy's prices ranged from $14.69 to $39.10, with a yearly change of 166.26%. UnitedHealth's prices fluctuated between C$21.03 and C$30.05, with a yearly change of 42.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.