Airbnb vs. Chewy: Do Pets or Places Power One Stock More than the Other?

As global travel habits evolve and pet ownership remains a staple of household spending, investors are frequently comparing Airbnb Inc. (NASDAQ:ABNB) and Chewy Inc. (NYSE:CHWY) to find the best growth opportunities.

Airbnb acts as a dominant platform for alternative accommodations and experiences, whereas Chewy serves as a dedicated digital ecosystem for pet products and healthcare. Both companies rely on consumer discretionary spending but face vastly different competitive landscapes and regulatory environments.

The case for Airbnb

Airbnb operates a peer-to-peer marketplace that connects over 5 million hosts with guests seeking unique travel experiences. The company does not own the properties on its platform, which allows it to scale quickly as more hosts join the travel and tourism stocks ecosystem. It focuses on integrating artificial intelligence to personalize search results and has developed partnerships with major cultural and sports organizations to keep its brand relevant.

In FY 2025, revenue reached about $12.3 billion, representing a growth rate of approximately 11% compared to the previous year. The company reported a net income of roughly $2.5 billion for the period. While net income remained strong, its net margin, which shows how much of each dollar of revenue becomes profit, came in at about 20.4%, down slightly from the previous fiscal year.

As of its December 2025 balance sheet, Airbnb maintained a debt-to-equity ratio of approximately 0.3x. This ratio compares a company's total debt to its shareholder equity, with lower numbers generally indicating less financial risk. The current ratio, which measures the ability to cover short-term liabilities with short-term assets, was close to 1.4x. Free cash flow reached about $4.6 billion, though stock-based compensation represented roughly 34% of operating cash flow, which inflates reported cash generation since stock-based compensation is a non-cash expense added back in the cash flow statement.

The case for Chewy

Chewy serves as a leading e-commerce destination for pet owners in the United States and Canada, offering roughly 190,000 different products. Its strategy centers on the Autoship subscription program, which provides predictable revenue and high customer loyalty. Recently, the company has expanded its reach into pet health through Chewy Pharmacy and Chewy Vet Care clinics, including the strategic acquisition of Modern Animal.

In FY 2025, revenue reached approximately $12.6 billion, which was an increase of about 6.2% over the prior year. The company generated a net income of around $222.8 million. Its net margin was approximately 1.8%, reflecting the competitive nature of retail, where high volumes are often balanced by narrower profit figures per sale.

As of its February 2026 balance sheet, the company had a debt-to-equity ratio of approximately 1.0x. The current ratio stood at roughly 0.9x, suggesting that its current assets are just slightly below its current liabilities. Free cash flow for the period was about $562.4 million. Note that stock-based compensation represented roughly 43% of operating cash flow, which inflates reported cash generation since stock-based compensation is a non-cash expense added back in the cash flow statement.

Risk profile comparison

Airbnb faces significant regulatory hurdles as cities around the world implement stricter rules for short-term rentals. Specifically, the EU Short-Term Rental Regulation taking effect in May 2026 could limit the number of listings available in key European markets. The company also faces intense competition from Booking Holdings Inc. (NASDAQ:BKNG) and Expedia Group (NASDAQ:EXPE), and it remains heavily dependent on third-party cloud services from Amazon.com Inc. (NASDAQ:AMZN) to keep its platform running.

Chewy operates in a crowded retail environment where it must compete with massive omnichannel players like Amazon and various big-box merchandisers. Because the company is expanding into pharmacy and veterinary services, it is subject to a complex web of state and federal healthcare regulations. Any failure to maintain licenses or comply with pharmacy laws could lead to significant fines. Additionally, Chewy relies on a few key suppliers for its premium pet food, and losing those relationships could hurt its ability to offer exclusive incentives to customers.

Valuation comparison

Airbnb carries a significantly higher sales multiple, while Chewy offers a lower entry point based on its revenue but trades at a similar multiple of future earnings estimates.

Valuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.

Which stock would I buy in 2026?

Airbnb reported an excellent second quarter of fiscal 2026, rallying shares sharply after results. The business beat consensus revenue estimates by $100 million, reporting $3.6 billion in sales, up 17% from the same period in 2025, driven by a strong increase in booked nights. Foreign markets like India and Latin America, two markets in which Airbnb is seeking growth, were exceptionally strong. The third quarter should see sales close to $4.8 billion and net income around $1.7 billion.

The business is finding ways to expand its popular travel business, embracing features like buy now, pay later (BNPL) on reservations, a form of short-term lending. The network advantage of Airbnb's history, over 2 billion guest arrivals since 2008, and the lack of host presence on AI (meaning a competitor using AI has little data to scrape to form a competing product) give it a competitive moat.

For the full year, management expects sales of $14.1 billion with net income of $3.2 billion.

Chewy, meanwhile, is establishing a steady growth pattern. In a recently reported quarter, management noted that its Autoship program grew faster than overall sales, implying that many customers' standing orders will continue to provide a solid base for the company. The company also believes that in the long run, veterinarian and general pet health services are a huge untapped market for Chewy. The business recently closed on the acquisition of Modern Animal, which delivers high profitability per location and is a strong complement to Chewy's existing business.

For fiscal 2026, sales are seen rising 7% to $13.5 billion, with net income up nearly 50% to $333 million, according to consensus analyst estimates.

However, Chewy likely doesn't have a great competitive moat against brick-and-mortar competitors like PetSmart and Petco Health and Wellness Co Inc. (NASDAQ:WOOF).

In choosing between these two, it's really a choice between steady pet-related growth and the higher tech-driven growth of Airbnb. Admittedly, Airbnb hasn't shown many vulnerabilities to competitors yet in the notoriously price-sensitive travel market, but Chewy's stickier loyalty among pet owners is more appealing, along with its much more affordable stock.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb, Amazon, Booking Holdings, and Chewy. The Motley Fool has a disclosure policy.