Head-To-Head Survey: Fiverr International (NYSE:FVRR) and Chewy (NYSE:CHWY)

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

Insider and Institutional Ownership

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

Profitability

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

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fiverr International	1	5	7	0	2.46
Chewy	0	4	16	1	2.86

Fiverr International currently has a consensus price target of $32.22, indicating a potential upside of 124.84%. Chewy has a consensus price target of $47.21, indicating a potential upside of 94.75%. Given Fiverr International’s higher probable upside, analysts clearly believe Fiverr International is more favorable than Chewy.

Risk and Volatility

Fiverr International has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Chewy has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fiverr International	$391.48 million	1.31	$18.25 million	$0.59	24.29
Chewy	$11.86 billion	0.85	$392.74 million	$0.48	50.50

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.

Summary

Chewy beats Fiverr International on 10 of the 15 factors compared between the two stocks.

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.

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.