Amazon.com vs Atlassian Which Is a Better Investment?

Amazon.com and Atlassian are two well-known companies in the tech sector, each with their own unique strengths and strategies. Amazon.com, the e-commerce giant, has seen tremendous growth in recent years, driven by its diverse offerings and strong market position. On the other hand, Atlassian, a leading provider of collaboration and productivity software, has carved out a niche in the industry with its innovative products. Both stocks have performed well in the market but have different outlooks for potential investors to consider.

Amazon.com or Atlassian?

When comparing Amazon.com and Atlassian, 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 Amazon.com and Atlassian.

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. Amazon.com has a dividend yield of -%, while Atlassian has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amazon.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Atlassian 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 Amazon.com P/E ratio at 47.90 and Atlassian's P/E ratio at -184.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amazon.com P/B ratio is 9.22 while Atlassian's P/B ratio is 70.55.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amazon.com has seen a 5-year revenue growth of 1.33%, while Atlassian's is 2.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Atlassian's ROE at -38.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $225.86 for Amazon.com and $274.58 for Atlassian. Over the past year, Amazon.com's prices ranged from $144.05 to $231.20, with a yearly change of 60.50%. Atlassian's prices fluctuated between $135.29 and $287.97, with a yearly change of 112.85%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.