HomesToLife (NASDAQ:HTLM) & Chewy (NYSE:CHWY) Critical Survey

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

Earnings and Valuation

This table compares Chewy and HomesToLife”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	0.67	$222.80 million	$0.66	31.23
HomesToLife	$377.88 million	0.08	$16.55 million	$0.12	16.42

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

	Net Margins	Return on Equity	Return on Assets
Chewy	2.09%	60.88%	7.83%
HomesToLife	N/A	N/A	N/A

Institutional & Insider Ownership

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

Risk and Volatility

Chewy has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, HomesToLife has a beta of 0.02, meaning that its stock price is 98% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Chewy and HomesToLife, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chewy	1	7	17	1	2.69
HomesToLife	1	0	0	0	1.00

Chewy currently has a consensus price target of $30.64, indicating a potential upside of 48.61%. Given Chewy’s stronger consensus rating and higher probable upside, research analysts plainly believe Chewy is more favorable than HomesToLife.

Summary

Chewy beats HomesToLife on 15 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 HomesToLife

HomesToLife Ltd. engages in the retail of home furniture and sale of customized furniture solutions. Its products include leather and fabric upholstered furniture, case goods, and accessories. The company was founded by Yong Pin Phua and Yong Tat Phua in September 1989 and is headquartered in Singapore.