Chewy vs. Shopify: Which Consumer Stock Is a Better Buy in 2026?
Chewy trades at a steep discount on valuation metrics, while Shopify commands a premium tied to its 30% revenue growth and superior profitability.
Overview
Pet supplies or digital storefronts? Choosing between Chewy (NYSE:CHWY) and Shopify (NASDAQ:SHOP) depends on whether you prefer a specialized retail powerhouse or a high-growth infrastructure provider for global commerce.
Chewy focuses on capturing the pet parent wallet through a recurring subscription model, while Shopify provides software tools that enable millions of businesses to sell online. Both companies benefit from the long-term shift toward digital spending, though they trade at very different valuations when comparing the P/S ratio of each stock.
Details
Chewy serves millions of pet parents through its digital platform. It emphasizes recurring revenue via its Autoship program, which automates regular deliveries for essential pet supplies. In its latest annual report, filed for the period ending February 2025, Chewy noted its expansion through PracticeHub, a platform with approximately 20,000 veterinary practices enrolled, representing close to 50% of all clinics in the U.S.
Source
Originally published at www.fool.com.