Critical Analysis: Fiverr International (NYSE:FVRR) vs. Chewy (NYSE:CHWY)

Chewy (NYSE:CHWY) and Fiverr International (NYSE:FVRR) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Earnings and Valuation

This table compares Chewy and Fiverr International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chewy	$11.86 billion	0.83	$392.74 million	$0.48	49.63
Fiverr International	$391.48 million	1.20	$18.25 million	$0.59	22.25

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.

Volatility & Risk

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

Profitability

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

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Chewy and Fiverr International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chewy	0	4	16	0	2.80
Fiverr International	1	4	7	0	2.50

Chewy currently has a consensus target price of $47.21, indicating a potential upside of 98.20%. Fiverr International has a consensus target price of $32.22, indicating a potential upside of 145.41%. Given Fiverr International’s higher probable upside, analysts clearly believe Fiverr International is more favorable than Chewy.

Institutional & Insider Ownership

93.1% of Chewy shares are held by institutional investors. Comparatively, 59.0% of Fiverr International shares are held by institutional investors. 0.4% of Chewy shares are held by insiders. Comparatively, 15.9% of Fiverr International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Chewy beats Fiverr International on 9 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 websites and mobile applications. The company was founded in 2010 and is based in Plantation, Florida.

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.