Comprehensive Stock Comparison
Compare Chewy, Inc. (CHWY) vs Alibaba Group Holding Limited (BABA) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | CHWY | 6.4% revenue growth vs BABA's 5.9% |
| Value | BABA | Lower P/E (3.4x vs 52.2x) |
| Quality / Margins | BABA | 12.2% net margin vs CHWY's 1.2% |
| Stability / Safety | CHWY | Beta 0.74 vs BABA's 0.90 |
| Dividends | BABA | 1.2% yield; 2-year raise streak; CHWY pays no meaningful dividend |
| Momentum (1Y) | BABA | +10.2% vs CHWY's -26.4% |
| Efficiency (ROA) | BABA | 6.5% ROA vs CHWY's 4.8%, ROIC 9.6% vs 28.0% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Chewy is a pure-play online retailer of pet food, supplies, and medications in the United States. It generates revenue primarily through direct e-commerce sales of pet products — including its own private label brands — with additional income from its Autoship subscription service and pharmacy operations. The company's competitive advantage lies in its deep customer loyalty, driven by exceptional customer service and a highly convenient recurring delivery model that creates strong switching costs.
Alibaba is a Chinese e-commerce and technology conglomerate that operates digital marketplaces connecting buyers and sellers. It generates revenue primarily from its core commerce segments — China Commerce (~65%) and International Commerce (~10%) — along with cloud services (~10%) and logistics through Cainiao. Its key competitive advantage is its massive ecosystem network effect, where its platforms like Taobao and Tmall create a self-reinforcing cycle of merchants and consumers that's difficult for competitors to replicate.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
BABA leads in 2 of 6 categories (Financial Metrics, Total Returns). CHWY leads in 1 (Profitability & Efficiency). 2 tied.
Financial Metrics (TTM)
BABA is the larger business by revenue, generating $1.01T annually — 82.0x CHWY's $12.3B. BABA is the more profitable business, keeping 12.2% of every revenue dollar as net income compared to CHWY's 1.2%. On growth, CHWY holds the edge at +8.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | CHWYChewy, Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| RevenueTrailing 12 months | $12.3B | $1.01T |
| EBITDAEarnings before interest/tax | $313M | $114.6B |
| Net IncomeAfter-tax profit | $151M | $123.4B |
| Free Cash FlowCash after capex | $463M | $2.6B |
| Gross MarginGross profit ÷ Revenue | +29.5% | +41.2% |
| Operating MarginEBIT ÷ Revenue | +1.3% | +10.9% |
| Net MarginNet income ÷ Revenue | +1.2% | +12.2% |
| FCF MarginFCF ÷ Revenue | +3.8% | +0.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +8.6% | +4.8% |
| EPS Growth (YoY)Latest quarter vs prior year | -79.4% | -52.0% |
Valuation Metrics
At 18.4x trailing earnings, BABA trades at a 39% valuation discount to CHWY's 30.1x P/E. On an enterprise value basis, CHWY's 49.6x EV/EBITDA is more attractive than BABA's 104.2x.
| Metric | CHWYChewy, Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| Market CapShares × price | $11.4B | $2.66T |
| Enterprise ValueMkt cap + debt − cash | $11.3B | $2.67T |
| Trailing P/EPrice ÷ TTM EPS | 30.13x | 18.44x |
| Forward P/EPrice ÷ next-FY EPS est. | 52.23x | 3.42x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 49.63x | 104.23x |
| Price / SalesMarket cap ÷ Revenue | 0.96x | 18.33x |
| Price / BookPrice ÷ Book value/share | 45.20x | 2.19x |
| Price / FCFMarket cap ÷ FCF | 25.12x | 233.68x |
Profitability & Efficiency
CHWY delivers a 38.8% return on equity — every $100 of shareholder capital generates $39 in annual profit, vs $11 for BABA. BABA carries lower financial leverage with a 0.23x debt-to-equity ratio, signaling a more conservative balance sheet compared to CHWY's 1.92x.
| Metric | CHWYChewy, Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| ROE (TTM)Return on equity | +38.8% | +11.1% |
| ROA (TTM)Return on assets | +4.8% | +6.5% |
| ROICReturn on invested capital | +28.0% | +9.6% |
| ROCEReturn on capital employed | +12.0% | +10.4% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 1.92x | 0.23x |
| Net DebtTotal debt minus cash | -$93M | $66.8B |
| Cash & Equiv.Liquid assets | $596M | $181.7B |
| Total DebtShort + long-term debt | $502M | $248.5B |
| Interest CoverageEBIT ÷ Interest expense | 35.37x | 15.74x |
Total Returns (with DRIP)
A $10,000 investment in BABA five years ago would be worth $6,154 today (with dividends reinvested), compared to $2,616 for CHWY. Over the past 12 months, BABA leads with a +10.2% total return vs CHWY's -26.4%. The 3-year compound annual growth rate (CAGR) favors BABA at 19.2% vs CHWY's -12.2% — a key indicator of consistent wealth creation.
| Metric | CHWYChewy, Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| YTD ReturnYear-to-date | -18.1% | -7.5% |
| 1-Year ReturnPast 12 months | -26.4% | +10.2% |
| 3-Year ReturnCumulative with dividends | -32.4% | +69.4% |
| 5-Year ReturnCumulative with dividends | -73.8% | -38.5% |
| 10-Year ReturnCumulative with dividends | -21.6% | +116.1% |
| CAGR (3Y)Annualised 3-year return | -12.2% | +19.2% |
Risk & Volatility
CHWY is the less volatile stock with a 0.74 beta — it tends to amplify market swings less than BABA's 0.90 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. BABA currently trades 74.8% from its 52-week high vs CHWY's 56.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | CHWYChewy, Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.74x | 0.90x |
| 52-Week HighHighest price in past year | $48.62 | $192.67 |
| 52-Week LowLowest price in past year | $23.52 | $95.73 |
| % of 52W HighCurrent price vs 52-week peak | +56.4% | +74.8% |
| RSI (14)Momentum oscillator 0–100 | 47.3 | 33.4 |
| Avg Volume (50D)Average daily shares traded | 6.4M | 10.2M |
Analyst Outlook
Wall Street rates CHWY as "Buy" and BABA as "Buy". Consensus price targets imply 68.2% upside for CHWY (target: $46) vs 30.9% for BABA (target: $189). BABA is the only dividend payer here at 1.23% yield — a key consideration for income-focused portfolios.
| Metric | CHWYChewy, Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $46.11 | $188.62 |
| # AnalystsCovering analysts | 37 | 58 |
| Dividend YieldAnnual dividend ÷ price | — | +1.2% |
| Dividend StreakConsecutive years of raises | — | 2 |
| Dividend / ShareAnnual DPS | — | $12.14 |
| Buyback YieldShare repurchases ÷ mkt cap | +8.3% | +0.5% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Chewy, Inc. (CHWY) | 100 | 98.13 | -1.9% |
| Alibaba Group Holdi… (BABA) | 100 | 79.81 | -20.2% |
Alibaba Group Holdi… (BABA) returned -38% over 5 years vs Chewy, Inc. (CHWY)'s -74%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Chewy, Inc. (CHWY) | $901M | $11.9B | +1217.1% |
| Alibaba Group Holdi… (BABA) | $101.1B | $996.3B | +885.1% |
Alibaba Group Holding Limited's revenue grew from $101.1B (2016) to $996.3B (2025) — a 28.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Chewy, Inc. (CHWY) | -11.9% | 3.3% | +127.8% |
| Alibaba Group Holdi… (BABA) | 70.7% | 13.1% | -81.5% |
Alibaba Group Holding Limited's net margin went from 71% (2016) to 13% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Chewy, Inc. (CHWY) | 309 | 36.8 | -88.1% |
| Alibaba Group Holdi… (BABA) | 8.8 | 2.7 | -69.3% |
Chewy, Inc. has traded in a 37x–309x P/E range over 3 years; current trailing P/E is ~30x. Alibaba Group Holding Limited has traded in a 2x–9x P/E range over 9 years; current trailing P/E is ~18x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Chewy, Inc. (CHWY) | -0.27 | 0.91 | +437.0% |
| Alibaba Group Holdi… (BABA) | 34 | 53.6 | +57.6% |
Alibaba Group Holding Limited's EPS grew from $34.00 (2016) to $53.60 (2025) — a 5% CAGR.
Chart 6Free Cash Flow — 5 Years
Chewy, Inc. generated $452M FCF in 2024 (+5190% vs 2021). Alibaba Group Holding Limited generated $78B FCF in 2025 (-57% vs 2021).
CHWY vs BABA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is CHWY or BABA a better buy right now?
Alibaba Group Holding Limited (BABA) offers the better valuation at 18.4x trailing P/E (3.4x forward), making it the more compelling value choice. Analysts rate Chewy, Inc. (CHWY) a "Buy" — based on 37 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — CHWY or BABA?
On trailing P/E, Alibaba Group Holding Limited (BABA) is the cheapest at 18.4x versus Chewy, Inc. at 30.1x. On forward P/E, Alibaba Group Holding Limited is actually cheaper at 3.4x.
03Which is the better long-term investment — CHWY or BABA?
Over the past 5 years, Alibaba Group Holding Limited (BABA) delivered a total return of -38.5%, compared to -73.8% for Chewy, Inc. (CHWY). A $10,000 investment in BABA five years ago would be worth approximately $6K today (assuming dividends reinvested). Over 10 years, the gap is even starker: BABA returned +116.1% versus CHWY's -21.6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — CHWY or BABA?
By beta (market sensitivity over 5 years), Chewy, Inc. (CHWY) is the lower-risk stock at 0.74β versus Alibaba Group Holding Limited's 0.90β — meaning BABA is approximately 21% more volatile than CHWY relative to the S&P 500. On balance sheet safety, Alibaba Group Holding Limited (BABA) carries a lower debt/equity ratio of 23% versus 192% for Chewy, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — CHWY or BABA?
Alibaba Group Holding Limited (BABA) is the more profitable company, earning 13.1% net margin versus 3.3% for Chewy, Inc. — meaning it keeps 13.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BABA leads at 14.1% versus 0.9% for CHWY. At the gross margin level — before operating expenses — BABA leads at 40.0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is CHWY or BABA more undervalued right now?
On forward earnings alone, Alibaba Group Holding Limited (BABA) trades at 3.4x forward P/E versus 52.2x for Chewy, Inc. — 48.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CHWY: 68.2% to $46.11.
07Which pays a better dividend — CHWY or BABA?
In this comparison, BABA (1.2% yield) pays a dividend. CHWY does not pay a meaningful dividend and should not be held primarily for income.
08Is CHWY or BABA better for a retirement portfolio?
For long-horizon retirement investors, Alibaba Group Holding Limited (BABA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.90), 1.2% yield, +116.1% 10Y return). Both have compounded well over 10 years (BABA: +116.1%, CHWY: -21.6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between CHWY and BABA?
Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. BABA pays a dividend while CHWY does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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