Head-To-Head Survey: RideNow Group (NASDAQ:RDNW) and Chewy (NYSE:CHWY)

RideNow Group (NASDAQ:RDNW) and Chewy (NYSE:CHWY) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Valuation & Earnings

This table compares RideNow Group and Chewy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RideNow Group	$1.21 billion	0.14	-$78.60 million	($2.80)	-1.57
Chewy	$11.86 billion	1.18	$392.74 million	$0.35	96.29

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for RideNow Group and Chewy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RideNow Group	1	4	1	0	2.00
Chewy	0	5	20	2	2.89

RideNow Group currently has a consensus price target of $4.75, suggesting a potential upside of 7.95%. Chewy has a consensus price target of $45.84, suggesting a potential upside of 36.02%. Given Chewy’s stronger consensus rating and higher possible upside, analysts plainly believe Chewy is more favorable than RideNow Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RideNow Group	-9.35%	-223.85%	-4.01%
Chewy	1.22%	50.45%	5.19%

Insider and Institutional Ownership

66.1% of RideNow Group shares are owned by institutional investors. Comparatively, 93.1% of Chewy shares are owned by institutional investors. 54.7% of RideNow Group shares are owned by company insiders. Comparatively, 0.4% of Chewy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

RideNow Group has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Chewy has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500.

Summary

Chewy beats RideNow Group on 14 of the 15 factors compared between the two stocks.

About RideNow Group

RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.

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 websites and mobile applications. The company was founded in 2010 and is based in Plantation, Florida.