Chewy vs. Coupang: Steady vs. Fluctuating Quarterly Revenue Trends |

Chewy: Maintaining Steady Revenue Trends Over Two Years

Chewy (CHWY -0.11%) primarily earns its revenue by selling pet food, essential supplies, and specialized animal medications directly to consumers online.

It focused on integrating its recent veterinary acquisition to gradually expand its physical clinical care footprint across new geographic locations, while a third-party supplier issued a voluntary product recall for two specific dog supplements over potential contamination concerns.

Coupang: Generating Higher Total Revenue With Some Fluctuation

Coupang (CPNG +2.33%) generates its core revenue by operating a large e-commerce marketplace and managing multiple logistics delivery services for international consumers.

It expanded the geographic coverage of its signature delivery service to reach more customers throughout Taiwan, while simultaneously facing a new on-site investigation and legal standoff with South Korean regulatory authorities over its ongoing pricing strategies and supplier policies.

Why Revenue Matters for Investors

Revenue here refers to the data provider’s standardized income statement revenue line item, which serves as a primary metric for individual investors looking to evaluate top-line business scale and assess overall operational trajectory over time.

Quarterly Revenue for Chewy and Coupang

Foolish Take

When comparing Chewy to Coupang, I lean toward Chewy.

Admittedly, neither e-commerce company has delivered compelling levels of revenue growth. However, I look upon Chewy’s growth potential more favorably. Between its expansion into Canada and its efforts to open vet clinics, it appears to have greater potential for expansion and could enter other markets in the future.

Although Coupang is the e-commerce leader in South Korea, its days of rapid growth appear to be over. While it has moved into Taiwan to stoke revenue growth, it must compete with Sea Limited and others in that market. Also, with e-commerce becoming established globally, it seems to have fewer obvious opportunities for expansion.

Additionally, Coupang does not currently earn a profit, so a P/E ratio comparison is not appropriate. Nonetheless, when comparing the price-to-sales (P/S) ratio of both companies, Chewy’s 0.6 P/S ratio is lower than Coupang’s 0.8 sales multiple.

Thus, as both companies seek newer and more creative opportunities to deliver higher growth, Chewy seems to hold the edge at this time.

Will Healy has positions in Sea Limited. The Motley Fool has positions in and recommends Chewy and Sea Limited. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy.