# Chewy vs. Shopify: Better Buy for 2027

> Which e-commerce stock offers better value through 2027: Chewy's steady growth or Shopify's high-growth premium?
- Title: Chewy vs. Shopify: Better Buy for 2027 · The Motley Fool
- Summary: Which e-commerce stock offers better value through 2027: Chewy's steady growth or Shopify's high-growth premium?
- Keywords: chewy, shopify, pet e-commerce, e-commerce platform, stock valuation, 2027 forecast, autoship subscription, gross margin, p/e ratio, free cash flow, The Motley Fool
- Source: The Motley Fool — https://fool.com/coverage/better-buy/2026/11/13/chewy-vs-shopify-which-consumer-stock-is-a-better-buy-for-2027
- Author: Brendan Coffey
- Published: 2026-11-13T23:42:02+00:00
- Read time: 1 min
- Topics: chewy, shopify, pet e-commerce, e-commerce platform, stock valuation, 2027 forecast, autoship subscription, gross margin, p/e ratio, free cash flow, finance, money
## Chewy's Market Position
Chewy dominates pet e-commerce with high-volume Autoship subscriptions and expanding healthcare services.

> Chewy provides a comprehensive e-commerce platform dedicated to pet products, prescriptions, and veterinary services.
## Shopify's Global Reach
Shopify powers digital infrastructure for millions of merchants across 175+ countries with integrated payment and capital tools.

> Shopify provides the essential internet infrastructure that allows millions of merchants to run businesses across more than 175 countries.
## Chewy Financials
Chewy reported $13.1 billion revenue and $273.7 million net income for the 12 months ended August 2026.

> In the 12 months ended Aug. 2, 2026, revenue reached around $13.1 billion, representing a growth rate of approximately 5.9%.
## Shopify Financials
Shopify reported $14.2 billion revenue and $2.1 billion net income for the 12 months ended September 30, 2026.

> In the 12 months ended Sept. 30, 2026, revenue reached about $14.2 billion, fueled by a growth rate of around 32.5%.
## Chewy's Debt Profile
Chewy has a debt-to-equity ratio of 1.0x and free cash flow of $562.4 million, with stock-based compensation accounting for 43.1% of cash flow.

> As of its February 2026 balance sheet, the debt-to-equity ratio was approximately 1.0x.
## Shopify's Debt Profile
Shopify maintains a debt-to-equity ratio of 0.0x and free cash flow of $2.0 billion, with stock-based compensation at 22.1% of cash flow.

> As of its December 2025 balance sheet, Shopify maintained a debt-to-equity ratio of 0.0x.
## Chewy's Growth Strategy
Chewy targets pet health services expansion and acquired Modern Animal to boost profitability in veterinary care.

> The business recently closed on the acquisition of Modern Animal, which delivers high profitability per location and is a strong complement to Chewy's existing business.
## Shopify's Growth Strategy
Shopify aims to expand into Europe and leverage agentic AI merchandising for 30% annual revenue growth through 2027.

> Shopify supports the UCP from the Google arm of Alphabet, designed to enable agentic AI commerce by allowing AI agents to interact with merchant systems throughout the shopping journey.
## 2027 Forecast for Chewy
Chewy projects 7% sales growth to $13.5 billion and 40% net income increase to $317 million by 2027.

> For fiscal 2027, sales are seen rising 7% to $13.5 billion, with net income up more than 40% to around $317 million, according to consensus analyst estimates.
## 2027 Forecast for Shopify
Shopify expects low-30% annual revenue growth through 2027, with a focus on European expansion and AI-driven commerce.

> Management projects low-30% annual revenue growth for the current year.
## Investment Comparison
Chewy offers more affordable valuation with a 29.2x forward P/E ratio versus Shopify's 78.7x, despite Shopify's faster growth.

> Chewy appears much more affordable on both earnings and sales metrics, whereas Shopify carries a premium price reflecting its much faster growth rates.
## Key takeaway

Chewy provides stable pet care subscriptions with 7% sales growth to $13.5 billion by 2027, while Shopify shows rapid expansion but trades at a 78.7x P/E ratio.