Freshpet vs Chewy Which Performs Better?

Freshpet and Chewy are two leading companies in the pet industry, each offering unique products and services to pet owners. Freshpet specializes in fresh, refrigerated pet food, while Chewy is an online retailer that offers a wide range of pet products and supplies. Both companies have experienced growth in recent years, but their stocks have shown different performances. In this comparison, we will analyze the stock performance of Freshpet and Chewy, and see how they stack up against each other in the market.

Freshpet or Chewy?

When comparing Freshpet and Chewy, 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 Freshpet and Chewy.

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. Freshpet has a dividend yield of -%, while Chewy has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Freshpet reports a 5-year dividend growth of 0.00% year and a payout ratio of 738.97%. On the other hand, Chewy 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 Freshpet P/E ratio at 162.00 and Chewy's P/E ratio at 32.16. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Freshpet P/B ratio is 6.99 while Chewy's P/B ratio is 58.18.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Freshpet has seen a 5-year revenue growth of 1.91%, while Chewy's is 1.89%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Freshpet's ROE at 4.47% and Chewy's ROE at 86.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $146.30 for Freshpet and $31.05 for Chewy. Over the past year, Freshpet's prices ranged from $77.39 to $160.91, with a yearly change of 107.92%. Chewy's prices fluctuated between $14.69 and $39.10, with a yearly change of 166.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.