AL vs Amazon.com Which Is More Promising?

AL and Amazon.com are two prominent players in the e-commerce industry, each offering unique value propositions to investors. AL, also known as Alibaba Group Holding Limited, is a Chinese multinational conglomerate specializing in e-commerce, retail, and technology. On the other hand, Amazon.com, based in the United States, is the world's largest online retailer, offering a wide range of products and services. Both companies have shown impressive growth and profitability, making them attractive investment options for those interested in the e-commerce sector.

AL or Amazon.com?

When comparing AL and Amazon.com, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AL and Amazon.com.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AL has a dividend yield of -%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AL reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Amazon.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AL P/E ratio at -16.09 and Amazon.com's P/E ratio at 47.81. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AL P/B ratio is -37.80 while Amazon.com's P/B ratio is 9.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AL has seen a 5-year revenue growth of -0.93%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AL's ROE at 166.45% and Amazon.com's ROE at 21.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.59 for AL and $220.60 for Amazon.com. Over the past year, AL's prices ranged from HK$0.48 to HK$0.98, with a yearly change of 104.17%. Amazon.com's prices fluctuated between $143.64 and $227.13, with a yearly change of 58.12%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.