Overstock.com vs Chewy Which Is More Promising?

Both Overstock.com and Chewy are prominent e-commerce companies that have seen significant growth in recent years. Overstock.com, primarily known for its online retail marketplace, has diversified its business to include a blockchain-based division. On the other hand, Chewy specializes in pet products and has seen immense success as a direct-to-consumer brand. While both companies have attracted investor interest, their stocks have experienced different fluctuation patterns in recent months, making them an interesting comparison for potential investors.

Overstock.com or Chewy?

When comparing Overstock.com 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 Overstock.com 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. Overstock.com 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. Overstock.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Overstock.com P/E ratio at -0.83 and Chewy's P/E ratio at 37.36. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Overstock.com P/B ratio is 1.43 while Chewy's P/B ratio is 27.97.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Overstock.com has seen a 5-year revenue growth of -0.43%, while Chewy's is 1.89%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Overstock.com's ROE at -123.84% and Chewy's ROE at 71.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.02 for Overstock.com and $31.53 for Chewy. Over the past year, Overstock.com's prices ranged from $6.02 to $39.18, with a yearly change of 550.79%. 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.