Amazon.com vs AutoZone Which Performs Better?

Amazon.com and AutoZone are two leading companies in the retail sector, but their business models and target markets are quite different. Amazon.com is a global e-commerce giant, offering a wide range of products and services online, while AutoZone is a specialty retailer focused on automotive parts and accessories. Both companies have seen significant growth in recent years, but their stock performance has varied. Investors looking to diversify their portfolios may find potential in both Amazon.com and AutoZone stocks, each offering unique opportunities for growth and profit.

Amazon.com or AutoZone?

When comparing Amazon.com and AutoZone, 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 AutoZone.

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 AutoZone 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, AutoZone 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 AutoZone's P/E ratio at 22.01. 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 AutoZone's P/B ratio is -12.34.

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 AutoZone's is 1.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and AutoZone's ROE at -54.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $225.86 for Amazon.com and $3345.44 for AutoZone. Over the past year, Amazon.com's prices ranged from $144.05 to $231.20, with a yearly change of 60.50%. AutoZone's prices fluctuated between $2510.00 and $3416.71, with a yearly change of 36.12%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.