Chewy (NYSE:CHWY) vs. TripAdvisor (NASDAQ:TRIP) Head to Head Review

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

Risk and Volatility

Chewy has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, TripAdvisor has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chewy	$12.60 billion	0.81	$222.80 million	$0.52	47.30
TripAdvisor	$1.89 billion	0.68	$40.00 million	$0.30	37.19

Chewy has higher revenue and earnings than TripAdvisor. TripAdvisor 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 TripAdvisor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chewy	1.77%	53.48%	7.22%
TripAdvisor	2.12%	10.67%	2.52%

Insider and Institutional Ownership

93.1% of Chewy shares are held by institutional investors. Comparatively, 99.0% of TripAdvisor shares are held by institutional investors. 0.4% of Chewy shares are held by company insiders. Comparatively, 3.1% of TripAdvisor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Chewy and TripAdvisor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chewy	0	5	18	2	2.88
TripAdvisor	5	7	4	0	1.94

Chewy currently has a consensus target price of $42.91, suggesting a potential upside of 74.45%. TripAdvisor has a consensus target price of $14.51, suggesting a potential upside of 30.08%. Given Chewy’s stronger consensus rating and higher possible upside, analysts plainly believe Chewy is more favorable than TripAdvisor.

Summary

Chewy beats TripAdvisor on 12 of the 15 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 TripAdvisor

TripAdvisor, Inc. operates as an online travel company, primarily engages in the provision of travel guidance products and services worldwide. The company operates in three segments: Brand Tripadvisor, Viator, and TheFork. The Brand Tripadvisor segment offers travel guidance platforms for travelers to discover, generate, and share authentic user-generated content in the form of ratings and reviews for destinations, points-of-interest, experiences, accommodations, restaurants, and cruises. The Viator's segment provides pure-play experiences online travel agency that comprehensive and connecting travelers to discover and book tours, activities, and attractions from experience operators. TheFork segment provides an online marketplace that enables diners to discover and book online reservations at restaurants. TripAdvisor, Inc. was founded in 2000 and is headquartered in Needham, Massachusetts. Tripadvisor, Inc. is a subsidiary of Liberty TripAdvisor Holdings, Inc.