Financial Contrast: Booking (NASDAQ:BKNG) & Chewy (NYSE:CHWY)

Booking (NASDAQ:BKNG) and Chewy (NYSE:CHWY) are both large-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Institutional & Insider Ownership

92.4% of Booking shares are held by institutional investors. Comparatively, 93.1% of Chewy shares are held by institutional investors. 0.2% of Booking shares are held by company insiders. Comparatively, 0.4% of Chewy 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Booking	19.37%	-134.86%	25.39%
Chewy	1.22%	50.45%	5.19%

Risk and Volatility

Booking has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Chewy has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Booking and Chewy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Booking	0	8	26	1	2.80
Chewy	0	5	19	2	2.88

Booking presently has a consensus price target of $6,141.52, indicating a potential upside of 19.60%. Chewy has a consensus price target of $46.28, indicating a potential upside of 38.20%. Given Chewy’s stronger consensus rating and higher possible upside, analysts plainly believe Chewy is more favorable than Booking.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Booking	$23.74 billion	6.97	$5.88 billion	$153.86	33.37
Chewy	$11.86 billion	1.17	$392.74 million	$0.35	95.67

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

Summary

Chewy beats Booking on 8 of the 15 factors compared between the two stocks.

About Booking

Booking Holdings Inc, formerly The Priceline Group Inc., is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).

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.