CHWY vs SE: Which Is the Better Buy in 2026?
Last updated October 2026
Short answer
SE is the larger of the two ($57.43B market cap): the incumbent the market prices for continued execution (18.00x forward earnings, beta 1.55). CHWY is the smaller challenger ($8.43B), cheaper on forward earnings (11.22x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
CHWY vs SE: the tie-breaker metrics
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.
| Metric | CHWY | SE | What it tells you |
|---|---|---|---|
| Market cap | $8.43B | $57.43B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 11.22 | 18.00 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 32.26 | 36.20 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 1.38 | 1.55 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 17% of range | 18% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 22.72 | 4.62 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
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.
Before you buy: how CHWY and SE affect your concentration
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. CHWY and SE 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 CHWY and SE 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.
What does Chewy (CHWY) do?
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.
What does Sea Limited (SE) do?
Sea Limited is a Singapore-based technology company that operates three interconnected businesses across Southeast Asia, Taiwan, Brazil, and other markets. Shopee is its e-commerce marketplace and the largest segment by revenue. Garena is its digital entertainment arm, historically driven by the mobile hit Free Fire and the licensing and publishing of other games. Monee, the rebranded digital financial services unit formerly called SeaMoney, provides digital payments and, increasingly, consumer and seller lending. The three feed one another: Shopee generates transactions and users, Monee monetizes those users through credit, and Garena has historically funded the group with cash flow.
CHWY vs SE: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- CHWY drivers: Autoship makes the revenue sticky; Higher-margin businesses are the profit lever.
- SE drivers: Shopee e-commerce scale and monetization; Monee (SeaMoney) lending flywheel.
Which fits which kind of investor
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: 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. For SE, the dominant risk is competition on every front: Shopee faces TikTok Shop, Lazada, Temu, and others in commerce; Monee competes with regional super-apps like Grab and GoTo in fintech; and Garena competes with global gaming publishers.
CHWY or SE: which should you pick?
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 CHWY if you believe its drivers more; SE 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 CHWY and SE guides.
CHWY vs SE: the full fundamentals
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.
SE. Figures are approximate and tied to the asOf date; verify live numbers before acting. The 2026 sell-off has compressed the multiple: at $96 the stock trades near 37 times trailing earnings but about 18 times forward estimates, which assume EPS rises from roughly $3.93 in 2026 to $5.21 in 2027, and about 2.1 times sales. Third-quarter results are due November 10, 2026, with consensus at about $0.97 of EPS on roughly $8.08 billion of revenue. The 28-analyst mean target of about $155 sits far above the price, but those views embed the assumption that the three-segment flywheel keeps working and that profit growth catches up with revenue.
Headline figures (approximate, October 2026): 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%; SE shows revenue (ttm) ~$27.7 billion; FY2025 ~$22.9 billion, revenue (q2 2026) ~$7.79 billion, up ~48% year over year, net income ~$441 million in Q2 2026; ~$1.64 billion TTM, eps (q2 2026) $0.84 vs ~$0.86 consensus.
The bottom line: CHWY vs SE
CHWY and SE 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 CHWY and SE exposure against your real portfolio. It is not an investment adviser.
Wondering how CHWY or SE fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Chewy with AI
Connect the broker you already use and ask Walnut's AI how CHWY fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between CHWY and SE?
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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. Sea Limited is a Singapore-based technology company that operates three interconnected businesses across Southeast Asia, Taiwan, Brazil, and other markets. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is CHWY or SE the better stock?
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Neither is universally better. SE is the larger incumbent; CHWY is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, CHWY or SE?
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On forward P/E (as of October 2026), CHWY trades at 11.22x and SE at 18.00x, so CHWY is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both CHWY and SE?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of CHWY vs SE?
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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 has slowed as the US pet market matures, with net sales up only about 6% in fiscal 2025 and active-customer growth modest after a long stretch of flat-to-declining counts following the pandemic pet boom. Competition is intense and well-capitalized: Amazon, Walmart, big-box pet chains like PetSmart and Petco, and local veterinarians all compete for the same wallet. The vet-clinic expansion carries execution and integration risk and weighs on near-term profit, while share-based compensation and ongoing BC Partners stock sales create dilution and overhang. Chewy also now carries more debt (about $1.16 billion after a $600 million term loan used around the Modern Animal deal) against about $612 million of cash. Finally, the stock has historically traded at a premium that bakes in continued margin gains; even after falling about 37% in 2026 it sits near 33 times trailing earnings, so disappointing customer growth or margin progress can still pressure the shares. SE: The dominant risk is competition on every front: Shopee faces TikTok Shop, Lazada, Temu, and others in commerce; Monee competes with regional super-apps like Grab and GoTo in fintech; and Garena competes with global gaming publishers. Any of these can pressure growth, take rates, or marketing spend. Monee's fast loan-book expansion adds credit risk, and a regional economic slowdown could raise defaults just as the book is large. Garena remains concentrated in Free Fire, so a fade in that franchise would hit the group's most profitable segment. As an emerging-markets ADR, Sea carries currency, regulatory, and geopolitical exposure across many jurisdictions, and any stumble in growth or margins can trigger sharp drawdowns. This is a volatile stock, not a defensive one. The 2026 drawdown, about 27% year to date and 41% over one year as of mid-October, shows how quickly sentiment can turn even while revenue is growing near 50%; the narrow second-quarter EPS miss ($0.84 vs ~$0.86) arrived alongside slower profit growth.
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Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell CHWY or SE; figures are approximate and dated (as of October 2026). Verify current data before investing.