Booking vs. Chewy: Do Pet Treats or Plane Tickets Make for a Better Stock in 2026?

In 2026, two companies present contrasting investment opportunities: Booking Holdings Inc. (BKNG) and Chewy Inc. (CHWY). Both operate within the consumer discretionary sector, but their distinct business models present different risks and rewards for long-term investors.

Booking Holdings, a massive online travel platform, connects millions of travelers to accommodations worldwide through brands like Agoda, Priceline, and OpenTable. In FY 2025, the company reported revenue of approximately $26.9 billion, growing by about 13.4% year-over-year. Net income reached around $5.4 billion, translating to a net margin of roughly 20.1%.

Despite a negative debt-to-equity ratio of -3.5x, Booking boasts a healthy current ratio of approximately 1.3x and generated free cash flow of about $9.1 billion. The company's valuation appears lower than Chewy's based on future earnings estimates, and it is working towards reducing reliance on third-party platforms while focusing on its merchant model for higher margins.

Chewy, on the other hand, specializes in the pet care market, offering e-commerce convenience and healthcare services. In FY 2025, Chewy reported revenue of approximately $12.6 billion, growing by about 6.2% year-over-year. Net income was around $222.8 million, resulting in a net margin of about 1.8%. However, Chewy's current ratio stands at roughly 0.9x, indicating potential liquidity challenges.

The company's valuation is significantly lower than Booking's based on trailing twelve-month sales multiples. Chewy's growth is driven by successful acquisitions like Modern Animal and a focus on the untapped pet health services market. While they face regulatory risks and competition from brick-and-mortar retailers like PetSmart and Petco, Chewy's Autoship program shows promising growth and steady revenue increases.