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

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

Risk and Volatility

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

Institutional and Insider 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Chewy and Beyond, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chewy	1	5	14	0	2.65
Beyond	0	2	4	0	2.67

Chewy currently has a consensus price target of $27.64, indicating a potential upside of 71.16%. Beyond has a consensus price target of $39.00, indicating a potential upside of 71.13%. Given Chewy’s higher probable upside, equities research analysts plainly believe Chewy is more favorable than Beyond.

Valuation & Earnings

This table compares Chewy and Beyond’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chewy	$11.15 billion	0.63	$39.58 million	$0.08	201.90
Beyond	$1.56 billion	0.67	-$307.84 million	($6.80)	-3.35

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.

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%

Summary

Chewy beats Beyond on 10 of the 13 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 websites and mobile applications. The company was founded in 2010 and is based 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.