Head-To-Head Analysis: Chewy (NYSE:CHWY) versus Fiverr International (NYSE:FVRR)

Fiverr International (NYSE:FVRR) 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 institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Volatility and Risk

Fiverr International has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Chewy has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fiverr International	5.23%	13.53%	4.70%
Chewy	1.64%	56.78%	6.80%

Valuation & Earnings

This table compares Fiverr International and Chewy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fiverr International	$391.48 million	1.31	$18.25 million	$0.59	24.29
Chewy	$11.86 billion	0.85	$392.74 million	$0.48	50.50

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

Institutional and Insider Ownership

59.0% of Fiverr International shares are owned by institutional investors. Comparatively, 93.1% of Chewy shares are owned by institutional investors. 15.9% of Fiverr International shares are owned by insiders. Comparatively, 0.4% of Chewy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Fiverr International and Chewy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fiverr International	1	5	7	0	2.46
Chewy	0	4	16	1	2.86

Fiverr International presently has a consensus target price of $32.22, suggesting a potential upside of 124.84%. Chewy has a consensus target price of $47.21, suggesting a potential upside of 94.75%. Given Fiverr International’s higher probable upside, equities research analysts clearly believe Fiverr International is more favorable than Chewy.

Summary

Chewy beats Fiverr International on 10 of the 15 factors compared between the two stocks.

About Fiverr International

Fiverr International Ltd. operates an online marketplace worldwide. Its platform enables sellers to sell their services and buyers to buy them. The company's platform includes various categories in ten verticals, including graphic and design, digital marketing, writing and translation, video and animation, music and audio, programming and tech, business, data, lifestyle, and photography. It also offers value-added products, including subscription-based content marketing, back-office, learning and development offerings, creative talent, and freelancer management platforms. In addition, the company provides a suite of professional solutions that enable businesses to engage with freelancers; Fiverr Pro, a marketplace; Fiverr Certified, a storefront to access certified experts for partner vendors; Fiverr Enterprise, a gateway to source and manage on-demand and long-term freelancers. Further, it offers various value-added products, including Promoted Gigs which allows sellers to advertise their services on the platform; and Seller Plus, a subscription program that equips sellers with advanced tools. The company's buyers include businesses of various sizes, as well as sellers comprise a group of freelancers and agencies. Fiverr International Ltd. was incorporated in 2010 and is headquartered in Tel Aviv, Israel.

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.