Chewy (CHWY) vs Pattern Group Inc. (PTRN)

Chewy and Pattern Group Inc. are both Internet Retail companies. Chewy is the larger, with a market value of $8.9B against $3.0B — 3.0× the size. Pattern Group Inc. has negative trailing earnings, so its P/E is not meaningful; Chewy trades at 33.5×. Chewy has the higher net margin (2.09% vs −4.57%) and the higher return on invested capital (58.6% vs 8.54%). Across the 18 metrics below, Chewy leads on 14 and Pattern Group Inc. on 4.

Valuation

Metric CHWY PTRN Internet Retail median
P/E 33.47 n/m 23.78
P/S 0.69 1.00 0.76
P/B 24.23 35.04 1.73
Price to free cash flow 15.80 28.34 14.90
EV/EBITDA 18.97 43.84 18.44
EV/Sales 0.69 0.88 0.81
Earnings yield 2.99% (9.72%) (0.52%)
Free cash flow yield 6.33% 3.53% (0.47%)

Profitability

Metric CHWY PTRN Internet Retail median
Gross margin 29.92% 43.89% 44.12%
Operating margin 2.51% 1.36% 0.76%
Net margin 2.09% (4.57%) 0.56%
Free cash flow margin 4.35% 3.52% 0.00%
Return on equity 71.99% (143.51%) 0.00%
Return on assets 7.98% (17.60%) 0.00%
Return on invested capital 58.61% 8.54% 0.00%

Growth

Metric CHWY PTRN Internet Retail median
Revenue growth (TTM) 5.86% — 10.60%
EPS growth (last fiscal year) (42.86%) (389.36%) 19.82%
Revenue growth, 5-year CAGR 12.01% — 10.81%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric CHWY PTRN Internet Retail median
Debt to equity 1.60 0.00 0.10
Current ratio 0.84 2.35 1.52
Net debt to EBITDA (2.29) (6.85) (0.66)

Dividend

Metric CHWY PTRN Internet Retail median
Dividend yield — — 1.74%
Payout ratio — — 0.27

Size

Metric CHWY PTRN Internet Retail median
Market cap 8.86b 3.00b 528.20m

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