Head to Head Comparison: Lowe’s Companies (NYSE:LOW) versus Petco Health and Wellness (NASDAQ:WOOF)

Petco Health and Wellness (NASDAQ:WOOF – Get Free Report) and Lowe’s Companies (NYSE:LOW – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Analyst Ratings

This is a breakdown of recent ratings for Petco Health and Wellness and Lowe’s Companies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Petco Health and Wellness 2 5 1 1 2.11
Lowe’s Companies 2 12 22 0 2.56

Petco Health and Wellness presently has a consensus price target of $3.42, suggesting a potential upside of 52.68%. Lowe’s Companies has a consensus price target of $254.29, suggesting a potential upside of 34.67%. Given Petco Health and Wellness’ higher probable upside, equities analysts plainly believe Petco Health and Wellness is more favorable than Lowe’s Companies.

Risk & Volatility

Petco Health and Wellness has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, Lowe’s Companies has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Institutional & Insider Ownership

74.1% of Lowe’s Companies shares are owned by institutional investors. 6.5% of Petco Health and Wellness shares are owned by company insiders. Comparatively, 0.3% of Lowe’s Companies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Petco Health and Wellness and Lowe’s Companies”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Petco Health and Wellness $5.96 billion 0.12 $9.07 million $0.10 22.40
Lowe’s Companies $86.29 billion 1.23 $6.65 billion $11.83 15.96

Lowe’s Companies has higher revenue and earnings than Petco Health and Wellness. Lowe’s Companies 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.

Profitability

This table compares Petco Health and Wellness and Lowe’s Companies’ 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%
Lowe’s Companies 7.34% -75.67% 12.82%

Summary

Lowe’s Companies beats Petco Health and Wellness on 9 of the 15 factors compared between the two stocks.

About Petco Health and Wellness

(Get Free Report)

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 Lowe’s Companies

(Get Free Report)

Lowe’s Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical. In addition, the company offers installation services through independent contractors in various product categories; and extended protection plans and repair services. It sells its national brand-name merchandise and private brand products to professional customers, homeowners, renters, businesses, and government. The company also sells its products through Lowes.com website; and through mobile applications. Lowe’s Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.

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