Walmart vs Chewy Which Performs Better?

Walmart and Chewy are two major players in the retail industry, but they operate in very different spheres. Walmart is a multinational corporation known for its brick-and-mortar stores and extensive range of products, while Chewy is a fast-growing e-commerce company specializing in pet supplies. Both companies have seen growth in their stock values, with Walmart's established presence in the market providing stability, while Chewy's innovative business model and focus on the pet industry attracting investors seeking high-growth opportunities.

Walmart or Chewy?

When comparing Walmart 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 Walmart 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. Walmart has a dividend yield of 0.65%, while Chewy has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 33.23%. 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 Walmart P/E ratio at 39.10 and Chewy's P/E ratio at 32.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Walmart P/B ratio is 8.73 while Chewy's P/B ratio is 58.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Walmart has seen a 5-year revenue growth of 0.34%, while Chewy's is 1.89%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Walmart's ROE at 23.31% and Chewy's ROE at 86.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $95.33 for Walmart and $30.92 for Chewy. Over the past year, Walmart's prices ranged from $49.85 to $96.18, with a yearly change of 92.95%. 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.