AMZN vs CHWY: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: CHWY is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. AMZN and CHWY share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined AMZN and CHWY exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Amazon is one of the largest companies in the world, operating across three major business lines. Amazon Web Services (AWS) is the dominant global cloud computing provider, with quarterly sales of $42.2 billion in the June 2026 quarter (an annual run rate of roughly $170 billion) and most of the company's operating income. The North America and International e-commerce segments include the Amazon online marketplace, Prime membership, and third-party seller services. Advertising has grown into the third-largest digital ad business in the world (after Google and Meta), at $19.8 billion in the June 2026 quarter alone.

Full AMZN guide

Chewy is the largest pure-play online retailer of pet products in the United States, selling pet food, treats, supplies, prescription medications, and other essentials, plus a growing set of pet-health services. The core of the model is Autoship, an auto-replenishment subscription that schedules recurring deliveries of food and supplies; Autoship accounts for roughly 83% of net sales, which gives Chewy unusually predictable, repeat-purchase revenue for a retailer. The company makes most of its money on product sales at retail-style gross margins, but it is steadily mixing in higher-margin revenue from Chewy Pharmacy, sponsored ads through its Chewy Ads retail-media network, and veterinary care. In fiscal 2025 (the year ended February 1, 2026) Chewy reported net sales of about $12.60 billion, up 6.2% (roughly 8.3% on a comparable 52-week basis), with around 21.3 million active customers and net sales per active customer near $600.

Full CHWY guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• AMZN drivers: AWS as the AI infrastructure backbone; Retail margin expansion.
• CHWY drivers: Autoship makes the revenue sticky; Higher-margin businesses are the profit lever.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Hyperscaler AI capex is concentrated; if model training demand cools, AWS growth slows. For CHWY, chewy operates in a structurally low-margin retail business, so even with mix improvements its net margins sit in the low single digits and small cost or pricing shifts matter a lot.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick AMZN if you believe its drivers more; CHWY if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the AMZN and CHWY guides.

AMZN. Amazon's trailing P/E fell to about 20x by October 2026, but mostly because one-time gains on its Anthropic stake swelled net income, not because the stock got cheaper; on forward estimates it trades near 24x, still well below the ~40x of early 2026. The valuation premium is paid for AWS and advertising; retail is essentially valued near cost. The open question is whether AWS growth near 37% justifies capex that has pushed free cash flow below zero, and the October 29 report is the next read on that.

CHWY. Chewy is best read as a profitable but low-margin retailer that is trying to mix in higher-margin revenue, so watch gross margin and adjusted EBITDA margin more than headline sales growth. At about 33 times trailing GAAP earnings but only around 11 times forward estimates, the gap reflects thin GAAP profit today and analysts' expectation that EPS climbs toward roughly $1.87; after a 37% fall in 2026 the market is clearly less willing to pay up for that path. Third-quarter results, guided to about $3.32-3.36 billion of sales and adjusted EPS near $0.39, are expected around December 9.

Headline figures (approximate, October 2026): AMZN shows revenue (ttm) ~$776 billion (June 2026 quarter up ~20% YoY), operating margin ~13.7% (AWS materially higher; retail much lower), net income (ttm) ~$135 billion (includes large Anthropic investment gains), eps (ttm) ~$12.43; CHWY shows net sales (ttm) About $13.07 billion; Q2 FY2026 ~$3.33 billion, up 7.3%, fy2026 guidance Net sales $13.46-13.57 billion; adjusted EBITDA margin 6.7-6.8%, net income (ttm) About $274 million (~2.1% net margin), gross margin (q2 fy2026) 30.4%.

AMZN and CHWY are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined AMZN and CHWY exposure against your real portfolio. It is not an investment adviser.