Walmart's Competitive Advantage Over Chewy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 02 2026
0mins
Should l Buy WMT?
Source: NASDAQ.COM
- Market Competitiveness: As the largest grocery chain in the U.S., Walmart demonstrates a stronger competitive moat than Chewy, attracting more consumers and enhancing its market share through a diverse product offering.
- Profit Margin Comparison: While Chewy holds a higher market valuation, its net profit margins have remained in the low single digits for years, significantly lower than Walmart's 3% to 4%, which constrains Chewy's future growth opportunities.
- Online Advertising Growth: Walmart's global advertising sales surged by 53% year-over-year in Q3 FY26, which is expected to enhance its profit margins, even as overall sales growth remains in the low single digits.
- Valuation Discrepancy: Chewy's P/E ratio of 67 compared to Walmart's 42 highlights a stark contrast; despite similar annual growth rates, Chewy's elevated valuation poses greater risks, necessitating careful evaluation by investors.
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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: 133.640
Low
119.00
Averages
125.75
High
136.00
Current: 133.640
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.
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- Banking Services: Most commercial banks, including JPMorgan Chase, Bank of America, and Capital One, are closed today following the Federal Reserve's holiday schedule, although online banking and ATM services remain operational, with transactions likely delayed until the next business day.
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- Analyst Optimism: Analysts at Oppenheimer expect Walmart's fourth-quarter holiday sales to come in at the high end of the projected growth range of 3.75% to 4.75%, reflecting market confidence in its sales performance, which could further boost the stock price.
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- Analyst Upgrades: Several analysts have raised Walmart's price targets, with Oppenheimer expecting fourth-quarter holiday sales to hit the high end of the projected growth range of 3.75% to 4.75%, reflecting market optimism about its sales outlook.
- Customer Base Expansion: Walmart has successfully attracted higher-income shoppers while maintaining its traditional budget-conscious clientele, enhancing its market competitiveness through modernized stores and online pickup services, thereby encroaching on rival Target's market share.
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