Market Competition Analysis: Chewy vs. Walmart
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 02 2026
0mins
Should l Buy WMT?
Source: Fool
- Market Growth Outlook: Grandview Research projects a 5.1% compound annual growth rate for the pet care market until 2030, indicating that while Chewy has a niche in the pet industry, its low profit margins limit future growth opportunities.
- Profit Margin Comparison: Chewy's net profit margin hovers around 2%, whereas Walmart's typically ranges from 3% to 4%, highlighting Walmart's stronger profitability in the retail sector despite both facing low-margin challenges.
- Advertising Revenue Surge: Walmart's global advertising sales surged by 53% year-over-year in Q3 FY26, providing an opportunity to boost profits even if sales growth remains in the low single digits, showcasing its potential for diversified revenue streams.
- Valuation Discrepancy: Chewy's P/E ratio of 67 significantly exceeds Walmart's 42, and despite similar growth rates, Chewy's high valuation poses greater risks, as evidenced by its nearly 70% stock price decline over the past five years, reflecting market concerns about its future growth.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy WMT?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on WMT
Wall Street analysts forecast WMT stock price to fall
26 Analyst Rating
25 Buy
1 Hold
0 Sell
Strong Buy
Current: 131.930
Low
119.00
Averages
125.75
High
136.00
Current: 131.930
Low
119.00
Averages
125.75
High
136.00
About WMT
Walmart Inc. is a technology-powered omnichannel retailer. The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce Websites and mobile applications, located throughout the United States (U.S.), Africa, Canada, Central America, Chile, China, India and Mexico. It operates in three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S. The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce, which includes omni-channel initiatives and certain other business offerings such as advertising services. The Walmart International segment consists of the Company's operations outside of the U.S. through its subsidiaries, as well as eCommerce and omni-channel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Comparison: Walmart vs. Costco
- Walmart's Market Advantage: With over 5,000 locations in the U.S. covering 90% of the population, Walmart leverages its stores as e-commerce distribution centers, achieving a 24% growth in e-commerce in Q4 2026, showcasing its competitive edge.
- Commitment of a Dividend King: Walmart has raised its dividend for 53 consecutive years, currently yielding 0.74%, providing shareholders with stable returns while increasing its market share among high-income households.
- Costco's Membership Loyalty: Costco boasts a renewal rate of 92.1% in the U.S. and Canada, and 89.7% globally, with executive members accounting for 76% of total sales, reflecting its efficient business model and strong customer retention.
- E-commerce Sales Growth: Costco's e-commerce sales increased by 24% year-over-year in Q2, with total sales up 9.1%, indicating that its investments in a tech-driven market are paying off, promising continued returns for shareholders.
See More
Analysis of Competitive Advantages Between Walmart and Costco
- Customer Base Expansion: Walmart has successfully expanded its market share by attracting higher-income customers earning over $100,000, demonstrating strong resilience during economic downturns, which enhances its competitive position in the retail market.
- Significant E-commerce Growth: Walmart's e-commerce business grew by 24% year-over-year in the fiscal fourth quarter of 2026, leveraging its stores as e-commerce distribution centers to enhance customer responsiveness and drive overall sales growth, showcasing its success in digital transformation.
- High Membership Renewal Rates: Costco achieved a membership renewal rate of 92.1% in the second quarter of 2026, with an increasing number of members upgrading to executive memberships that cost double, which not only boosts customer loyalty but also means executive members account for 76% of total sales, further solidifying its market position.
- Stable Dividend Yields: As a
See More
Walmart: A Model for Long-Term Investment
- Outstanding Stock Performance: Walmart's stock has risen approximately 3,240% over the past 30 years, significantly outperforming the S&P 500's 916% gain, demonstrating its reliability and stability as a long-term investment.
- Consistent Dividend Growth: Walmart has raised its dividend for 53 consecutive years, earning the title of 'Dividend King', maintaining this record even during economic turmoil, which reflects its strong cash flow and profitability.
- E-commerce and Market Expansion: Walmart effectively counters Amazon's competition by expanding its e-commerce marketplace, upgrading delivery services, and launching the Walmart+ subscription service, with future growth expected from its e-commerce and advertising segments.
- Future Growth Expectations: Analysts project that from fiscal 2026 to 2029, Walmart's revenue and EPS will grow at CAGRs of 5% and 10%, respectively, indicating its long-term growth potential in the retail sector.
See More
Walmart Funds $5.4 Million for Wildlife Habitat Conservation
- Funding Overview: The National Fish and Wildlife Foundation (NFWF) announced $5.4 million in grants through Walmart's Acres for America program, supporting seven community-driven projects aimed at permanently protecting over 177,000 acres of wildlife habitat across states including California and Colorado.
- Matching Funds Impact: This funding will leverage $135.8 million in public and private matching contributions, generating a total conservation impact of $141.2 million, highlighting the significance and potential of public-private partnerships in environmental conservation.
- Project Highlights: One project in New Mexico will preserve nearly 20,000 acres of Ghost Ranch, ensuring public access and restricting development along the riverfront, thereby maintaining ecological connectivity and cultural heritage.
- Long-term Strategic Importance: Since its launch in 2005, Walmart's Acres for America program has helped protect over 2.2 million acres of land, demonstrating the company's leadership and responsibility in promoting sustainability and community well-being.
See More
Domino's Pizza Earnings Analysis and New AI Partnership Developments
- Earnings Miss: Domino's Pizza reported Q1 2026 results with adjusted earnings of $4.13 per share, falling short of the $4.28 expected, and revenue of approximately $1.2 billion, slightly below the $1.17 billion forecast, indicating a 3.5% total revenue increase but only 0.9% growth in the U.S. market, reflecting tightening consumer spending.
- Share Buyback Initiative: The company announced an additional $1 billion for share buybacks, demonstrating management's confidence in the stock's undervaluation, with a 38% reduction in share count over the past decade contributing to a total return of 192%, although market reactions remain tepid, warranting investor attention on long-term effects.
- Operating Income Growth: Despite net income being impacted by investment losses, Domino's operating income rose by about 10% this quarter due to a more efficient supply chain and higher franchise fees, indicating strong core business profitability, even as the market reacted negatively to short-term earnings reports.
- AI Partnership Update: Microsoft has modified its partnership terms with OpenAI, eliminating revenue share payments for its own products using OpenAI models, significantly boosting Microsoft's margins, while OpenAI gains flexibility to license its models to other cloud providers, suggesting a more diversified future collaboration between the two companies.
See More
Domino's Q1 Earnings Analysis Reveals Mixed Results
- Disappointing Performance: Domino's reported adjusted earnings of $4.13 per share for Q1 2026, missing the expected $4.28, with revenue around $1.2 billion falling short of the $1.17 billion forecast, indicating signs of consumer spending slowdown.
- Same-Store Sales Growth: While same-store sales increased marginally, the U.S. growth was only 0.9%, which, when adjusted for inflation, suggests a real decline in sales, reflecting the pressure on consumer spending.
- Share Buyback Plan: The company announced an additional $1 billion allocation for stock buybacks, demonstrating management's confidence in the company's value, although the market's negative reaction indicates investor concerns about future growth.
- Operating Income Growth: Despite a $30 million non-cash loss impacting net income, Domino's operating income rose by 10%, driven by a more efficient supply chain and increased franchise fees, showcasing the core business's strong profitability.
See More
Investment Comparison: Walmart vs. Costco
- Walmart's Market Advantage: With over 5,000 locations in the U.S. covering 90% of the population, Walmart leverages its stores as e-commerce distribution centers, achieving a 24% growth in e-commerce in Q4 2026, showcasing its competitive edge.
- Commitment of a Dividend King: Walmart has raised its dividend for 53 consecutive years, currently yielding 0.74%, providing shareholders with stable returns while increasing its market share among high-income households.
- Costco's Membership Loyalty: Costco boasts a renewal rate of 92.1% in the U.S. and Canada, and 89.7% globally, with executive members accounting for 76% of total sales, reflecting its efficient business model and strong customer retention.
- E-commerce Sales Growth: Costco's e-commerce sales increased by 24% year-over-year in Q2, with total sales up 9.1%, indicating that its investments in a tech-driven market are paying off, promising continued returns for shareholders.
See More
Analysis of Competitive Advantages Between Walmart and Costco
- Customer Base Expansion: Walmart has successfully expanded its market share by attracting higher-income customers earning over $100,000, demonstrating strong resilience during economic downturns, which enhances its competitive position in the retail market.
- Significant E-commerce Growth: Walmart's e-commerce business grew by 24% year-over-year in the fiscal fourth quarter of 2026, leveraging its stores as e-commerce distribution centers to enhance customer responsiveness and drive overall sales growth, showcasing its success in digital transformation.
- High Membership Renewal Rates: Costco achieved a membership renewal rate of 92.1% in the second quarter of 2026, with an increasing number of members upgrading to executive memberships that cost double, which not only boosts customer loyalty but also means executive members account for 76% of total sales, further solidifying its market position.
- Stable Dividend Yields: As a
See More
Walmart: A Model for Long-Term Investment
- Outstanding Stock Performance: Walmart's stock has risen approximately 3,240% over the past 30 years, significantly outperforming the S&P 500's 916% gain, demonstrating its reliability and stability as a long-term investment.
- Consistent Dividend Growth: Walmart has raised its dividend for 53 consecutive years, earning the title of 'Dividend King', maintaining this record even during economic turmoil, which reflects its strong cash flow and profitability.
- E-commerce and Market Expansion: Walmart effectively counters Amazon's competition by expanding its e-commerce marketplace, upgrading delivery services, and launching the Walmart+ subscription service, with future growth expected from its e-commerce and advertising segments.
- Future Growth Expectations: Analysts project that from fiscal 2026 to 2029, Walmart's revenue and EPS will grow at CAGRs of 5% and 10%, respectively, indicating its long-term growth potential in the retail sector.
See More
Walmart Funds $5.4 Million for Wildlife Habitat Conservation
- Funding Overview: The National Fish and Wildlife Foundation (NFWF) announced $5.4 million in grants through Walmart's Acres for America program, supporting seven community-driven projects aimed at permanently protecting over 177,000 acres of wildlife habitat across states including California and Colorado.
- Matching Funds Impact: This funding will leverage $135.8 million in public and private matching contributions, generating a total conservation impact of $141.2 million, highlighting the significance and potential of public-private partnerships in environmental conservation.
- Project Highlights: One project in New Mexico will preserve nearly 20,000 acres of Ghost Ranch, ensuring public access and restricting development along the riverfront, thereby maintaining ecological connectivity and cultural heritage.
- Long-term Strategic Importance: Since its launch in 2005, Walmart's Acres for America program has helped protect over 2.2 million acres of land, demonstrating the company's leadership and responsibility in promoting sustainability and community well-being.
See More
Domino's Pizza Earnings Analysis and New AI Partnership Developments
- Earnings Miss: Domino's Pizza reported Q1 2026 results with adjusted earnings of $4.13 per share, falling short of the $4.28 expected, and revenue of approximately $1.2 billion, slightly below the $1.17 billion forecast, indicating a 3.5% total revenue increase but only 0.9% growth in the U.S. market, reflecting tightening consumer spending.
- Share Buyback Initiative: The company announced an additional $1 billion for share buybacks, demonstrating management's confidence in the stock's undervaluation, with a 38% reduction in share count over the past decade contributing to a total return of 192%, although market reactions remain tepid, warranting investor attention on long-term effects.
- Operating Income Growth: Despite net income being impacted by investment losses, Domino's operating income rose by about 10% this quarter due to a more efficient supply chain and higher franchise fees, indicating strong core business profitability, even as the market reacted negatively to short-term earnings reports.
- AI Partnership Update: Microsoft has modified its partnership terms with OpenAI, eliminating revenue share payments for its own products using OpenAI models, significantly boosting Microsoft's margins, while OpenAI gains flexibility to license its models to other cloud providers, suggesting a more diversified future collaboration between the two companies.
See More
Domino's Q1 Earnings Analysis Reveals Mixed Results
- Disappointing Performance: Domino's reported adjusted earnings of $4.13 per share for Q1 2026, missing the expected $4.28, with revenue around $1.2 billion falling short of the $1.17 billion forecast, indicating signs of consumer spending slowdown.
- Same-Store Sales Growth: While same-store sales increased marginally, the U.S. growth was only 0.9%, which, when adjusted for inflation, suggests a real decline in sales, reflecting the pressure on consumer spending.
- Share Buyback Plan: The company announced an additional $1 billion allocation for stock buybacks, demonstrating management's confidence in the company's value, although the market's negative reaction indicates investor concerns about future growth.
- Operating Income Growth: Despite a $30 million non-cash loss impacting net income, Domino's operating income rose by 10%, driven by a more efficient supply chain and increased franchise fees, showcasing the core business's strong profitability.
See More
