Head-To-Head Analysis: PC Connection (NASDAQ:CNXN) versus Chewy (NASDAQ:CHWY)

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

Profitability

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

Net Margins Return on Equity Return on Assets
PC Connection 2.61% 13.23% 8.62%
Chewy N/A N/A N/A

Valuation and Earnings

This table compares PC Connection and Chewy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PC Connection $2.70 billion 0.34 $64.59 million $2.37 14.81
Chewy N/A N/A N/A N/A N/A

PC Connection has higher revenue and earnings than Chewy.

Analyst Ratings

This is a breakdown of current ratings and target prices for PC Connection and Chewy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PC Connection 0 0 1 0 3.00
Chewy 0 7 5 0 2.42

PC Connection currently has a consensus price target of $44.00, suggesting a potential upside of 25.36%. Chewy has a consensus price target of $36.90, suggesting a potential upside of 19.26%. Given PC Connection’s stronger consensus rating and higher possible upside, equities analysts clearly believe PC Connection is more favorable than Chewy.

Insider and Institutional Ownership

41.8% of PC Connection shares are owned by institutional investors. Comparatively, 0.5% of Chewy shares are owned by institutional investors. 57.7% of PC Connection shares are owned 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.

Summary

PC Connection beats Chewy on 8 of the 9 factors compared between the two stocks.

PC Connection Company Profile

PC Connection, Inc., together with its subsidiaries, provides a range of information technology (IT) solutions. The company operates through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions. It offers IT products, such as computer systems, software and peripheral equipment, networking communications, and other products and accessories. The company also provides services comprising design, configuration, and implementation of IT solutions. In addition, publishes Connected, a quarterly publication that provides informative articles on the latest technologies and industry trends; distributes specialty catalogs to education, healthcare, and government customers; and MacConnection that publishes a catalog for the Apple market. The company markets its products and services through its Websites, such as connection.com, connection.com/enterprise, connection.com/publicsector, and macconnection.com. It serves small to medium-sized businesses (SMBs) comprising small office/home offices customers; government and educational institutions; and medium-to-large corporate accounts through outbound telemarketing and field sales and marketing programs targeted to specific customer populations, as well as through digital, Web, and print media advertising. PC Connection, Inc. was founded in 1982 and is headquartered in Merrimack, New Hampshire.

Chewy Company Profile

Chewy, Inc., together with its subsidiaries, engages in the pure play e-commerce business in the United States. The company provides pet food, pet products, pet medications, and other pet health products for dogs, cats, fish, birds, small pets, horses, and reptiles through its chewy.com retail Website, as well as its mobile applications. It offers approximately 45,000 products from 1,600 partner brands. The company was founded in 2010 and is headquartered in Dania Beach, Florida. Chewy, Inc. is a subsidiary of PetSmart, Inc.

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