Head-To-Head Analysis: Grabagun Digital (NYSE:PEW) versus Petco Health and Wellness (NASDAQ:WOOF)

Petco Health and Wellness (NASDAQ:WOOF) and Grabagun Digital (NYSE:PEW) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Risk and Volatility

Petco Health and Wellness has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Grabagun Digital has a beta of -0.08, meaning that its share price is 108% less volatile than the S&P 500.

Earnings and Valuation

This table compares Petco Health and Wellness and Grabagun Digital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petco Health and Wellness	$5.96 billion	0.13	$9.07 million	$0.10	23.90
Grabagun Digital	$96.45 million	0.67	-$2.51 million	($0.23)	-9.54

Petco Health and Wellness has higher revenue and earnings than Grabagun Digital. Grabagun Digital is trading at a lower price-to-earnings ratio than Petco Health and Wellness, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Petco Health and Wellness and Grabagun Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petco Health and Wellness	2	5	1	1	2.11
Grabagun Digital	1	0	1	0	2.00

Petco Health and Wellness presently has a consensus target price of $3.42, suggesting a potential upside of 43.10%. Grabagun Digital has a consensus target price of $5.00, suggesting a potential upside of 127.79%. Given Grabagun Digital’s higher probable upside, analysts clearly believe Grabagun Digital is more favorable than Petco Health and Wellness.

Insider and Institutional Ownership

4.8% of Grabagun Digital shares are held by institutional investors. 6.5% of Petco Health and Wellness shares are held by company insiders. Comparatively, 27.8% of Grabagun Digital 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 Petco Health and Wellness and Grabagun Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Petco Health and Wellness	0.51%	3.44%	0.78%
Grabagun Digital	-6.42%	-6.15%	-5.16%

Summary

Petco Health and Wellness beats Grabagun Digital on 10 of the 14 factors compared between the two stocks.

About Petco Health and Wellness

Petco Health and Wellness Company, Inc., operates as a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics. It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites. The company offers its products under the WholeHearted, Reddy, and Well & Good brands. Petco Health and Wellness Company, Inc. was founded in 1965 and is headquartered in San Diego, California.

About Grabagun Digital

GrabAGun.com is an online retailer of firearms, ammunition and related accessories. GrabAGun.com, formerly known as Colombier Acquisition Corp. II, is based in COPPELL, Texas.