Financial Analysis: Chewy (NYSE:CHWY) and Brand House Collective (NASDAQ:TBHC)

Brand House Collective (NASDAQ:TBHC) and Chewy (NYSE:CHWY) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Brand House Collective and Chewy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brand House Collective	1	0	0	0	1.00
Chewy	1	7	16	1	2.68

Chewy has a consensus price target of $30.64, suggesting a potential upside of 66.98%. Given Chewy’s stronger consensus rating and higher possible upside, analysts clearly believe Chewy is more favorable than Brand House Collective.

Volatility & Risk

Brand House Collective has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500. Comparatively, Chewy has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Earnings & Valuation

This table compares Brand House Collective and Chewy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brand House Collective	$409.65 million	0.05	-$23.13 million	($1.09)	-0.86
Chewy	$12.60 billion	0.59	$222.80 million	$0.66	27.80

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

Insider and Institutional Ownership

15.4% of Brand House Collective shares are held by institutional investors. Comparatively, 93.1% of Chewy shares are held by institutional investors. 3.0% of Brand House Collective shares are held by company insiders. Comparatively, 0.3% of Chewy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Brand House Collective and Chewy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brand House Collective	-6.79%	N/A	-15.05%
Chewy	2.09%	60.88%	7.83%

Summary

Chewy beats Brand House Collective on 13 of the 15 factors compared between the two stocks.

About Brand House Collective

Kirkland’s, Inc. operates as a specialty retailer of home décor and furnishings in the United States. Its stores provide various merchandise, including holiday décor, furniture, textiles, ornamental wall décor, decorative accessories, art, mirrors, home fragrance, lighting, floral, housewares, outdoor, and gifts. The company operates its stores under the Kirkland’s, Kirkland’s Home, Kirkland’s Home Outlet, Kirkland’s Outlet, and Kirkland Collection names. It also operates an e-commerce website, kirklands.com. The company was founded in 1966 and is headquartered in Brentwood, Tennessee.

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.