Booking vs. Chewy: Do Pet Treats or Plane Tickets Make for a Better Stock in 2026?
2026-10-24 22:52
•Brendan Coffey •The Motley Fool
••••••• •••••••••• Axe Cap view
Booking vs Chewy: Travel Triumphs Over Treats in 2026
Booking Holdings offers solid cash flow and valuation advantages compared to Chewy's growth story with razor-thin margins.
Booking Holdings stands out in 2026 with a robust net margin north of 20% and steady free cash flow around $9 billion. Its shift to a merchant model and strong organic traffic cushion it from reliance on pricey digital ads. On the other hand, Chewy’s promise lies in its expanding Autoship subscriptions and veterinary clinics, but it struggles with razor-thin 1.8% net margins and a valuation almost double Booking's forward price-to-earnings ratio. For South African investors, this is a clear reminder why strong cash flow matters more than flashy growth when valuing global exposures. If the rand weakens against the dollar, Booking’s foreign earnings become more valuable locally. Still, if Chewy succeeds in further monetizing its services or scales veterinary clinics rapidly, its story could improve. But for now, Booking offers a safer, more financially sound option heading into 2026. this is just our opinion and not financial advice
Prefer Booking Holdings exposure for its superior margins and valuation. Avoid Chewy for now given weak profitability and competitive risks.
- USD/ZAR
- Booking Holdings (BKNG)
- Chewy scales vet clinics faster and improves margins
- Rand strengthens significantly, reducing USD translation benefits
6/10
The article compares Booking Holdings and Chewy as investment options for 2026. Booking dominates the travel market with a 20.1% net margin, $9.1B free cash flow, and a lower forward P/E of 15.4x, while successfully transitioning to a merchant model with strong organic traffic. Chewy operates in pet care with a slim 1.8% net margin but shows growth potential through its Autoship program and veterinary clinic expansion. The author recommends Booking based on superior valuation and financial metrics, despite both companies facing competitive pressures.
Our take is based on reporting first published by The Motley Fool.