Founded: 2013
Headquarter: Boston, US
Employees: 18,000
2023 Revenues: $11.15 BN
Stock Exchange: CHWY

In the shadow of generalist marketplaces such as Amazon, Alibaba and Temu, the US company Chewy has managed to carve out a spot for itself amid the fiercely competitive world of e-commerce by concentrating all its strength on a fast-growing market: pet products. With nearly 115,000 items for sale on its mobile app and website, including food, beds, litter, clothes, toys and vitamins, Chewy expects its revenue to increase from $11.15 billion in 2023 to between $11.6 billion and $11.8 billion in 2024, representing year-on-year growth of 4% to 5.8%.

The company says it has 20 million active customers who spend an average of $565 a year. Most analysts recommend buying the stock, which has already risen by more than 50% over the first 11 months of 2024. In its market, Chewy competes with Amazon and Etsy, which also sell pet products online, as well as with Petco Health and Wellness Company, which operates over 1,500 stores in the United States.

Founded: 2013
Headquarter: Parsippany, US
Employees: 14,000
2023 Revenues: $8.54 BN
Stock Exchange: ZTS

It pays to be independent. In February 2013, US pharmaceutical group Pfizer spun off its animal health business unit Zoetis in an IPO on the New York Stock Exchange (NYSE) for $26 per share. Barely over a decade later, the stock is trading just under $180, resulting in a significant increase of almost 4.75% over the period. And it’s not over: most analysts recommend buying the stock. As they should. Zoetis is the world leader in pet health, offering a fairly comprehensive suite of veterinary solutions (vaccines, anti-infective treatments, pain medicine, diagnostic products). Moreover, its portfolio boasts no fewer than 15 blockbuster drugs, each generating at least $100 million in revenue per year.

As generics are uncommon in animal health, Zoetis benefits from a comfortable margin (38% in 2023), enough to make its human health counterparts drool with envy. To compare figures, Pfizer posted operational revenue growth of 7% in 2023. Zoetis forecasts annual revenue for 2024 of between $9.2 billion and $9.3 billion, up from $8.54 billion in 2023, for year-on-year growth of 7.7% to 8.9%. However, that is significantly less than in 2021. Due to lockdowns during the pandemic, pet adoption surged to unprecedented numbers. As a result, Zoetis recorded growth of almost 16% in 2021, driving the company’s share price to new heights – almost $250 per share at its peak at end-December 2021. As things returned to normal post-pandemic, the share price fell sharply – dropping 10% in 2024 (between 1 January and 30 November) – which analysts consider a good momentum for investment.

Founded: 1968
Headquarter: Carros, France
Employees: 5,100
2023 Revenues: € 1.247 BN
Stock Exchange: VIRP

Sixth worldwide in the veterinary drugs market (behind US companies Zoetis and Elanco, among others), the French laboratory Virbac is experiencing turbulent times. Over the first nine months of 2024, its share price slid 10%, due to mistrust of small and mid-cap European companies. What’s more, the company’s CEO, Sébastien Huron, stepped down on 30 September after 18 years with the company and seven years as boss to, as stated in the press release, "take a break from his professional life". But that should not invalidate Virbac’s good health.

The company, which sells more than 1,000 products (veterinary medicines, diagnostic devices and nutritional supplements), expects revenue growth of 7% to 9% in 2024 from 2023, with a margin of 16%. Virbac derives 59% of its sales from domestic pets and 41% from livestock. Most analysts recommend buying shares. 

Founded: 1991
Headquarter: Handforth, United Kingdom
Employees: 8,000
2023 Revenues: £ 1.4 BN
Stock Exchange: PETS

Founded in 1991, British retailer Pets at Home sells a wide range of pet products (medication, food, toys, litter, accessories) in its 450 stores and via its app. With 7.8 million active customers, who spend an average of £178 a year, the company generated sales of £1.4 billion in the 2024 financial year, for year-on-year growth of 5.2%. Most analysts recommend buying shares, expecting the stock to rebound after the 10% decline over the first 11 months of 2024.

Founded: 1933
Headquarter: Magny-Vernois, France
Employees: 2,500
2023 Revenues: € 529 M
Stock Exchange: VETO

Dedicated entirely to animal health (farm animals and pets), the French laboratory Vetoquinol develops veterinary medicines. In the first nine months of 2024, the company posted revenue of €398 million, up 1.8% compared with the same period in 2023. Analysts are divided whether to hold or buy shares.