PetMed Express vs Chewy Which Is a Better Investment?

PetMed Express (PETS) and Chewy (CHWY) are two companies in the pet care industry that have attracted investors' attention in recent years. While both companies operate in the same space, they have different business models and growth strategies. PetMed Express is a leading online pet pharmacy retailer, known for its strong customer base and reliable medication supplies. Chewy, on the other hand, is a fast-growing e-commerce platform offering a wide range of pet products and services. Both companies have experienced fluctuations in their stock prices, and investors are closely watching to see which company will come out on top in the competitive pet care market.

PetMed Express or Chewy?

When comparing PetMed Express 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 PetMed Express 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. PetMed Express 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. PetMed Express reports a 5-year dividend growth of -2.85% year and a payout ratio of -21.60%. 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 PetMed Express P/E ratio at -115.69 and Chewy's P/E ratio at 39.49. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PetMed Express P/B ratio is 1.16 while Chewy's P/B ratio is 29.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, PetMed Express has seen a 5-year revenue growth of -0.06%, while Chewy's is 1.89%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PetMed Express's ROE at -1.00% and Chewy's ROE at 71.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.20 for PetMed Express and $31.29 for Chewy. Over the past year, PetMed Express's prices ranged from $2.90 to $8.27, with a yearly change of 185.17%. 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.