Chewy vs. Uber Technologies: Which Consumer Stock Is a Better Buy in 2026?

While one company thrives on the loyalty of pet parents and the other on global mobility and delivery, investors often wonder which offers better value. Today, we compare Chewy (NYSE:CHWY) and Uber Technologies (NYSE:UBER).

Chewy has carved out a massive niche by transforming how people shop for pet essentials, emphasizing subscription-based sales and health services. Uber provides the digital infrastructure for on-demand transportation and food delivery across seventy countries. Both companies utilize advanced technology to dominate their respective markets, as noted in their latest annual filings.

The case for Chewy

Chewy operates as a leading online retailer and pet-care platform, selling everything from food to medications. In its latest official results, reported for FY 2025, the company noted nearly 21.7 million active customers. It continues to expand its reach among retail stocks by enrolling approximately 20,000 veterinary practices in its PracticeHub platform, which represents roughly half of all clinics in the United States.

In FY 2025, revenue reached nearly $12.6 billion, representing a growth rate of roughly 6.2% over the previous year. The company reported net income of approximately $222.8 million during this period. This resulted in a net margin of close to 1.8%, reflecting the significant scale and thin-profit nature of its massive physical fulfillment and logistics operations.

As of its February 2026 balance sheet, the debt-to-equity ratio is roughly 1.1x, which compares total debt to shareholder equity. The current ratio, which measures the ability to cover short-term debts with assets, is approximately 0.9x. Free cash flow for FY 2025 reached about $562.4 million, though 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 Uber Technologies

Uber Technologies operates a global platform that connects consumers with mobility services, food delivery, and freight. In its latest annual report, filed for FY 2025, the company noted that its expansive network includes drivers, merchants, and shippers across more than 70 countries. It recently expanded its corporate and group dining capabilities through the $2.3 billion acquisition of ezCater, further diversifying its revenue streams.

For FY 2025, revenue grew to roughly $52.0 billion, a significant 18.3% increase from the prior year. The company achieved a substantial net income of nearly $10.1 billion. This performance resulted in a net margin of approximately 19.3%, showcasing the platform's ability to generate significant profit from its high transaction volume and global scale.

On its December 2025 balance sheet, the debt-to-equity ratio was close to 0.4x. Uber also maintained a current ratio of roughly 1.1x, which measures its ability to cover short-term liabilities with assets that can be quickly converted to cash. Free cash flow reached approximately $9.8 billion in FY 2025, providing the company with significant capital for reinvestment or future acquisitions.

Risk profile comparison

Chewy faces intense competition from mass merchants like Amazon (NASDAQ:AMZN) and traditional pet specialty stores. The company relies on a complex fulfillment network, and any disruption to its third-party logistics providers could materially harm business results. Additionally, a dual-class stock structure gives significant control to BC Partners affiliates, which could lead to conflicts of interest for minority shareholders.

Uber remains subject to complex litigation globally regarding driver classification, sexual assault incidents, and regulatory compliance. It faces stiff competition from rivals such as Lyft (NASDAQ:LYFT) in ridesharing and DoorDash (NASDAQ:DASH) in delivery services. Furthermore, its aggressive acquisition strategy, including the planned expansion with Delivery Hero (OTC:DLVHF), introduces integration risks and heightened regulatory scrutiny across multiple jurisdictions.

Valuation comparison

Uber is cheaper based on its forward P/E (future earnings estimates), while Chewy has a lower P/S ratio (sales over the past 12 months).

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

Which stock would I buy in 2026?

Uber and Chewy may not seem to have much in common, but at their core, both are logistics businesses. Chewy delivers pet products, while Uber delivers food, groceries, and people. For investors, the key question is which stock offers greater durability and which has more room to grow.

Chewy's strength lies in its diverse offerings, which range from pet food and supplies to medications and veterinary care. It also benefits from customer loyalty through its Autoship program. Pet owners need to buy food and other essentials regardless of the economic environment, and Chewy makes it convenient. However, it faces formidable competition from e-commerce giants such as Amazon, as well as other retailers.

Most people think of Uber primarily as a ride-hailing company and, to a lesser extent, as a food-delivery service. But its operations extend beyond rides and restaurant meals. Uber also delivers groceries and operates a freight business that connects shippers with carriers. The company continues to grow rapidly, including in services for corporate customers, while its planned acquisition of ezCater could expand its reach in corporate food delivery and provide additional opportunities for profitable growth.

If I were adding one of these stocks to my portfolio, I would choose Uber. Chewy has the advantage of serving a relatively defensive category with recurring demand, but Uber offers considerably more growth potential along with an attractive valuation relative to its earnings. That combination makes Uber the more compelling long-term stock for most investors.

Pamela Kock has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Chewy, DoorDash, and Lyft. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy.