Seek Returns logo

CHWY vs. ROST: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at CHWY and ROST, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolCHWYROST
Company NameChewy, Inc.Ross Stores, Inc.
CountryUnited StatesUnited States
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS IndustrySpecialty RetailSpecialty Retail
Market Capitalization16.08 billion USD49.82 billion USD
ExchangeNYSENasdaqGS
Listing DateJune 14, 2019August 8, 1985
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CHWY and ROST by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

CHWY vs. ROST: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolCHWYROST
5-Day Price Return8.16%1.98%
13-Week Price Return-5.09%19.45%
26-Week Price Return21.65%19.33%
52-Week Price Return35.01%0.55%
Month-to-Date Return-1.25%3.55%
Year-to-Date Return20.78%0.74%
10-Day Avg. Volume7.30M2.92M
3-Month Avg. Volume7.76M3.24M
3-Month Volatility50.56%20.43%
Beta1.681.18

Profitability

Return on Equity (TTM)

CHWY

48.34%

Specialty Retail Industry

Max
64.63%
Q3
37.13%
Median
19.07%
Q1
10.79%
Min
-16.66%

In the upper quartile for the Specialty Retail industry, CHWY’s Return on Equity of 48.34% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ROST

37.37%

Specialty Retail Industry

Max
64.63%
Q3
37.13%
Median
19.07%
Q1
10.79%
Min
-16.66%

In the upper quartile for the Specialty Retail industry, ROST’s Return on Equity of 37.37% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

CHWY vs. ROST: A comparison of their Return on Equity (TTM) against the Specialty Retail industry benchmark.

Net Profit Margin (TTM)

CHWY

1.22%

Specialty Retail Industry

Max
21.04%
Q3
10.99%
Median
6.08%
Q1
2.46%
Min
-4.37%

Falling into the lower quartile for the Specialty Retail industry, CHWY’s Net Profit Margin of 1.22% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

ROST

9.60%

Specialty Retail Industry

Max
21.04%
Q3
10.99%
Median
6.08%
Q1
2.46%
Min
-4.37%

ROST’s Net Profit Margin of 9.60% is aligned with the median group of its peers in the Specialty Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.

CHWY vs. ROST: A comparison of their Net Profit Margin (TTM) against the Specialty Retail industry benchmark.

Operating Profit Margin (TTM)

CHWY

1.32%

Specialty Retail Industry

Max
33.35%
Q3
16.40%
Median
9.28%
Q1
4.05%
Min
-10.63%

CHWY’s Operating Profit Margin of 1.32% is in the lower quartile for the Specialty Retail industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

ROST

12.00%

Specialty Retail Industry

Max
33.35%
Q3
16.40%
Median
9.28%
Q1
4.05%
Min
-10.63%

ROST’s Operating Profit Margin of 12.00% is around the midpoint for the Specialty Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

CHWY vs. ROST: A comparison of their Operating Profit Margin (TTM) against the Specialty Retail industry benchmark.

Profitability at a Glance

SymbolCHWYROST
Return on Equity (TTM)48.34%37.37%
Return on Assets (TTM)4.97%14.08%
Net Profit Margin (TTM)1.22%9.60%
Operating Profit Margin (TTM)1.32%12.00%
Gross Profit Margin (TTM)29.45%27.61%

Financial Strength

Current Ratio (MRQ)

CHWY

0.81

Specialty Retail Industry

Max
2.72
Q3
1.81
Median
1.38
Q1
1.15
Min
0.52

CHWY’s Current Ratio of 0.81 falls into the lower quartile for the Specialty Retail industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ROST

1.58

Specialty Retail Industry

Max
2.72
Q3
1.81
Median
1.38
Q1
1.15
Min
0.52

ROST’s Current Ratio of 1.58 aligns with the median group of the Specialty Retail industry, indicating that its short-term liquidity is in line with its sector peers.

CHWY vs. ROST: A comparison of their Current Ratio (MRQ) against the Specialty Retail industry benchmark.

Debt-to-Equity Ratio (MRQ)

CHWY

0.00

Specialty Retail Industry

Max
3.44
Q3
1.57
Median
0.60
Q1
0.22
Min
0.00

Falling into the lower quartile for the Specialty Retail industry, CHWY’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ROST

0.26

Specialty Retail Industry

Max
3.44
Q3
1.57
Median
0.60
Q1
0.22
Min
0.00

ROST’s Debt-to-Equity Ratio of 0.26 is typical for the Specialty Retail industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

CHWY vs. ROST: A comparison of their Debt-to-Equity Ratio (MRQ) against the Specialty Retail industry benchmark.

Interest Coverage Ratio (TTM)

CHWY

-36.00

Specialty Retail Industry

Max
48.12
Q3
39.12
Median
14.13
Q1
3.63
Min
-36.00

CHWY has a negative Interest Coverage Ratio of -36.00. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

ROST

663.33

Specialty Retail Industry

Max
48.12
Q3
39.12
Median
14.13
Q1
3.63
Min
-36.00

With an Interest Coverage Ratio of 663.33, ROST demonstrates a superior capacity to service its debt, placing it well above the typical range for the Specialty Retail industry. This stems from either robust earnings or a conservative debt load.

CHWY vs. ROST: A comparison of their Interest Coverage Ratio (TTM) against the Specialty Retail industry benchmark.

Financial Strength at a Glance

SymbolCHWYROST
Current Ratio (MRQ)0.811.58
Quick Ratio (MRQ)0.370.93
Debt-to-Equity Ratio (MRQ)0.000.26
Interest Coverage Ratio (TTM)-36.00663.33

Growth

Revenue Growth

CHWY vs. ROST: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

CHWY vs. ROST: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

CHWY

0.00%

Specialty Retail Industry

Max
6.48%
Q3
2.84%
Median
1.04%
Q1
0.00%
Min
0.00%

CHWY currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ROST

1.02%

Specialty Retail Industry

Max
6.48%
Q3
2.84%
Median
1.04%
Q1
0.00%
Min
0.00%

ROST’s Dividend Yield of 1.02% is consistent with its peers in the Specialty Retail industry, providing a dividend return that is standard for its sector.

CHWY vs. ROST: A comparison of their Dividend Yield (TTM) against the Specialty Retail industry benchmark.

Dividend Payout Ratio (TTM)

CHWY

0.00%

Specialty Retail Industry

Max
192.64%
Q3
79.43%
Median
26.55%
Q1
0.00%
Min
0.00%

CHWY has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

ROST

24.66%

Specialty Retail Industry

Max
192.64%
Q3
79.43%
Median
26.55%
Q1
0.00%
Min
0.00%

ROST’s Dividend Payout Ratio of 24.66% is within the typical range for the Specialty Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

CHWY vs. ROST: A comparison of their Dividend Payout Ratio (TTM) against the Specialty Retail industry benchmark.

Dividend at a Glance

SymbolCHWYROST
Dividend Yield (TTM)0.00%1.02%
Dividend Payout Ratio (TTM)0.00%24.66%

Valuation

Price-to-Earnings Ratio (TTM)

CHWY

108.97

Specialty Retail Industry

Max
47.04
Q3
27.74
Median
23.51
Q1
13.77
Min
7.47

At 108.97, CHWY’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Specialty Retail industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ROST

24.14

Specialty Retail Industry

Max
47.04
Q3
27.74
Median
23.51
Q1
13.77
Min
7.47

ROST’s P/E Ratio of 24.14 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

CHWY vs. ROST: A comparison of their Price-to-Earnings Ratio (TTM) against the Specialty Retail industry benchmark.

Price-to-Sales Ratio (TTM)

CHWY

1.33

Specialty Retail Industry

Max
5.77
Q3
2.79
Median
1.21
Q1
0.53
Min
0.09

CHWY’s P/S Ratio of 1.33 aligns with the market consensus for the Specialty Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ROST

2.32

Specialty Retail Industry

Max
5.77
Q3
2.79
Median
1.21
Q1
0.53
Min
0.09

ROST’s P/S Ratio of 2.32 aligns with the market consensus for the Specialty Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

CHWY vs. ROST: A comparison of their Price-to-Sales Ratio (TTM) against the Specialty Retail industry benchmark.

Price-to-Book Ratio (MRQ)

CHWY

37.94

Specialty Retail Industry

Max
16.93
Q3
7.92
Median
3.98
Q1
1.86
Min
0.55

At 37.94, CHWY’s P/B Ratio is at an extreme premium to the Specialty Retail industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ROST

8.10

Specialty Retail Industry

Max
16.93
Q3
7.92
Median
3.98
Q1
1.86
Min
0.55

ROST’s P/B Ratio of 8.10 is in the upper tier for the Specialty Retail industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

CHWY vs. ROST: A comparison of their Price-to-Book Ratio (MRQ) against the Specialty Retail industry benchmark.

Valuation at a Glance

SymbolCHWYROST
Price-to-Earnings Ratio (TTM)108.9724.14
Price-to-Sales Ratio (TTM)1.332.32
Price-to-Book Ratio (MRQ)37.948.10
Price-to-Free Cash Flow Ratio (TTM)35.5729.67