Five Below (NASDAQ:FIVE) and Petco Health and Wellness (NASDAQ:WOOF) Head to Head Survey

Petco Health and Wellness (NASDAQ:WOOF) and Five Below (NASDAQ:FIVE) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.

Valuation & Earnings

This table compares Petco Health and Wellness and Five Below”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petco Health and Wellness	$6.12 billion	0.15	-$101.82 million	($0.01)	-293.00
Five Below	$3.88 billion	2.70	$253.61 million	$5.57	34.09

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

Risk & Volatility

Petco Health and Wellness has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, Five Below has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Petco Health and Wellness and Five Below, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petco Health and Wellness	1	9	3	0	2.15
Five Below	1	8	11	1	2.57

Petco Health and Wellness currently has a consensus target price of $3.96, indicating a potential upside of 35.09%. Five Below has a consensus target price of $177.79, indicating a potential downside of 6.37%. Given Petco Health and Wellness’ higher possible upside, equities analysts clearly believe Petco Health and Wellness is more favorable than Five Below.

Profitability

This table compares Petco Health and Wellness and Five Below’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Petco Health and Wellness	-0.04%	0.46%	0.10%
Five Below	6.96%	17.15%	7.09%

Summary

Five Below beats Petco Health and Wellness on 10 of the 13 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 Five Below

Five Below, Inc. operates as a specialty value retailer in the United States. The company offers range of accessories, which includes novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories, athletic tops and bottoms, and t-shirts, as well as nail polish, lip gloss, fragrance, and branded cosmetics; and personalized living space products, such as lamps, posters, frames, fleece blankets, plush items, pillows, candles, incense, lighting, novelty décor, accent furniture, and related items, as well as provides storage options. It provides assortment of sports balls, team sports merchandise, and fitness accessories comprising hand weights, jump ropes, and gym balls; various games, such as board games, puzzles, collectibles, and toys, including remote control; and summer season sports, which includes pool, beach, and outdoor toys, as well as games and accessories. In addition, the company offers accessories for cell phones, tablets, audio, and computers, as well as cases, chargers, headphones, and other related items; and media products including books, video games, and DVDs. It also provides assortment of craft activity kits, and arts and crafts supplies, such as crayons, markers, and stickers; and school products comprising backpacks, fashion notebooks and journals, novelty pens and pencils, and locker accessories. Further, the company offers party products, which includes party goods, decorations, gag gifts, and greeting cards, as well as every day and special occasion merchandise; assortment of classic and novelty candy bars, movie-size box candy, seasonal-related candy, and gum and snack food products, as well as sells chilled drinks through coolers; and provides seasonally specific items used to celebrate and decorate for events. The company was formerly known as Cheap Holdings, Inc. and changed its name to Five Below, Inc. in August 2002. Five Below, Inc. was incorporated in 2002 and is headquartered in Philadelphia, Pennsylvania.