Chewy (NYSE:CHWY) and Beyond (NYSE:BYON) Critical Review

Chewy (NYSE:CHWY) and Beyond (NYSE:BYON) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Profitability

This table compares Chewy and Beyond’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chewy	0.33%	11.69%	1.54%
Beyond	-19.72%	-16.92%	-11.38%

Earnings and Valuation

This table compares Chewy and Beyond’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chewy	$11.15 billion	0.69	$39.58 million	$0.08	220.78
Beyond	$1.56 billion	0.77	-$307.84 million	($6.80)	-3.88

Chewy has higher revenue and earnings than Beyond. Beyond is trading at a lower price-to-earnings ratio than Chewy, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

93.1% of Chewy shares are held by institutional investors. Comparatively, 76.3% of Beyond shares are held by institutional investors. 2.1% of Chewy shares are held by company insiders. Comparatively, 1.2% of Beyond shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Chewy has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Beyond has a beta of 3.76, indicating that its share price is 276% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Chewy and Beyond, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chewy	1	5	14	0	2.65
Beyond	0	2	3	0	2.60

Chewy presently has a consensus price target of $27.64, suggesting a potential upside of 56.53%. Beyond has a consensus price target of $35.40, suggesting a potential upside of 34.14%. Given Chewy’s stronger consensus rating and higher probable upside, research analysts clearly believe Chewy is more favorable than Beyond.

Summary

Chewy beats Beyond on 12 of the 14 factors compared between the two stocks.

About Chewy

Chewy, Inc., together with its subsidiaries, engages in the pure play e-commerce business in the United States. It provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its retail website www.chewy.com, as well as mobile applications. Chewy, Inc. was founded in 2010 and is headquartered in Plantation, Florida.

About Beyond

Beyond, Inc. operates as an online retailer of furniture and home furnishings products in the United States and Canada. The company offers furniture, bedding and bath, patio and outdoor gear, area rugs, tabletop and cookware, décor, storage and organization, small appliances, home improvement, and other products under the Bed Bath & Beyond brand. The company provides its products and services through its e-commerce platform accessible through its mobile application, which includes bedbathandbeyond.com, bedbathandbeyond.ca, and overstockgovernment.com. It also offers businesses advertising products or services on its website; Marketplace, a service that allows its partners to sell their products through third party sites; product sales to international customers using third party logistics providers; and Supplier Oasis, a singular integration point that enables partners to manage their products, inventory, and sales channels, as well as access multi-channel fulfillment services through its distribution network. The company was formerly known as Overstock.com, Inc. and changed its name to Beyond, Inc. in November 2023. Beyond, Inc. was founded in 1997 and is headquartered in Midvale, Utah.