Compare Tractor Supply Company (TSCO) vs Chewy, Inc. (CHWY) Stock

Tractor Supply Company (TSCO) offers the better valuation at 25.2x trailing P/E (23.8x forward), making it the more compelling value choice. Analysts rate Tractor Supply Company (TSCO) a "Buy" — based on 50 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.

On trailing P/E, Tractor Supply Company (TSCO) is the cheapest at 25.2x versus Chewy, Inc. at 30.1x. On forward P/E, Tractor Supply Company is actually cheaper at 23.8x.

Over the past 5 years, Tractor Supply Company (TSCO) delivered a total return of +71.5%, compared to -73.8% for Chewy, Inc. (CHWY). A $10,000 investment in TSCO five years ago would be worth approximately $17K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TSCO returned +237.2% 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.

By beta (market sensitivity over 5 years), Tractor Supply Company (TSCO) is the lower-risk stock at 0.53β versus Chewy, Inc.'s 0.74β — meaning CHWY is approximately 40% more volatile than TSCO relative to the S&P 500. On balance sheet safety, Chewy, Inc. (CHWY) carries a lower debt/equity ratio of 192% versus 4% for Tractor Supply Company — giving it more financial flexibility in a downturn.

Tractor Supply Company (TSCO) is the more profitable company, earning 7.1% net margin versus 3.3% for Chewy, Inc. — meaning it keeps 7.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TSCO leads at 9.5% versus 0.9% for CHWY. At the gross margin level — before operating expenses — TSCO leads at 33.2%, 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.

On forward earnings alone, Tractor Supply Company (TSCO) trades at 23.8x forward P/E versus 52.2x for Chewy, Inc. — 28.4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CHWY: 68.2% to $46.11.

In this comparison, TSCO (1.8% yield) pays a dividend. CHWY does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Tractor Supply Company (TSCO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.53), 1.8% yield, +237.2% 10Y return). Both have compounded well over 10 years (TSCO: +237.2%, 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.

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. TSCO 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.