Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTPamela Kock, The Motley FoolSat, July 18, 2026 at 5:35 AM GMT+2 5 min readInvestors are weighing whether Chewy (NYSE:CHWY) or Walmart (NASDAQ:WMT) offers the best balance of growth and stability as the digital and physical shopping worlds continue to converge in 2026.Chewy dominates the online pet market with its high-touch customer service model and subscription-based revenue. Walmart uses its unparalleled physical footprint and growing e-commerce capabilities to serve millions of shoppers globally. As both companies expand their digital ecosystems, understanding their different scales and profitability profiles is essential for deciding which stock fits your strategy.The case for ChewyChewy operates as a leader among retail stocks focused on pet parents across the U.S. and Canada. The company serves approximately 21.3 million active customers and maintains an extensive network of partners, including roughly 20,000 veterinary practices. Following its acquisition of Modern Animal in April 2026, the company has added physical veterinary clinics to its digital platform.In the fiscal year ended Feb. 1, 2026, revenue reached nearly $12.6 billion, representing growth of approximately 6.2% year over year. The company reported net income of close to $222.8 million for the period. While earnings declined compared with the prior fiscal year, a net margin of roughly 1.8% indicates the company remains profitable while investing in expansion.As of its February 2026 balance sheet, the debt-to-equity ratio is approximately 1.1x, which compares total debt to shareholder equity, while the current ratio is about 0.9x. In the fiscal year ended Feb. 1, 2026, the company generated nearly $562.4 million in free cash flow. Note that stock-based compensation represented roughly 43.1% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.The case for WalmartWalmart operates a massive omnichannel retail model across 19 countries, serving nearly 280 million customers weekly. The company uses proprietary customer data to bolster its advertising revenue streams following its acquisition of Vizio. This physical and digital reach allows it to maintain a dominant position in the global consumer landscape.In the fiscal year ended Jan. 31, 2026, revenue reached roughly $713.2 billion, a 4.7% increase compared with the prior fiscal year. Net income for the period was close to $21.9 billion. This performance resulted in a net margin of approximately 3.1%, highlighting its ability to generate significant profit at a massive scale.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info