Amazon.com vs Baidu Which Is More Lucrative?

Amazon.com and Baidu are two powerhouse companies in the tech industry, with both having a significant impact on the global market. While Amazon.com is known for its e-commerce platform and cloud computing services, Baidu is a leading Chinese search engine and AI technology company. Both stocks have seen impressive growth over the years, but they operate in very different markets and face distinct challenges. Understanding the key differences and factors influencing their stock performance is crucial for investors looking to make informed decisions in the tech sector.

Amazon.com or Baidu?

When comparing Amazon.com and Baidu, 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 Baidu.

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 Baidu 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, Baidu 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 45.08 and Baidu's P/E ratio at 11.42. 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 8.68 while Baidu's P/B ratio is 0.88.

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 Baidu's is 0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Baidu's ROE at 7.90%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $209.25 for Amazon.com and $84.04 for Baidu. Over the past year, Amazon.com's prices ranged from $139.52 to $215.08, with a yearly change of 54.16%. Baidu's prices fluctuated between $79.68 and $126.23, with a yearly change of 58.42%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.