Analyzing Beyond (NYSE:BYON) & Chewy (NYSE:CHWY)

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

Insider and Institutional Ownership

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

Profitability

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

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

Volatility and Risk

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beyond	$1.56 billion	0.72	-$307.84 million	($6.80)	-3.63
Chewy	$11.15 billion	0.65	$39.58 million	$0.08	207.06

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.

Analyst Recommendations

This is a summary of current ratings and target prices for Beyond and Chewy, as provided by MarketBeat.

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

Beyond currently has a consensus target price of $35.40, suggesting a potential upside of 43.44%. Chewy has a consensus target price of $27.64, suggesting a potential upside of 66.88%. Given Chewy’s stronger consensus rating and higher probable upside, analysts plainly believe Chewy is more favorable than Beyond.

Summary

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

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.

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.