Amazon.com vs Baozun Which Should You Buy?

Amazon.com and Baozun are two prominent players in the e-commerce industry, each offering unique opportunities for investors. While Amazon is a global online retail giant with a diverse range of products and services, Baozun focuses on providing e-commerce solutions for brands looking to establish and expand their presence in the Chinese market. Both stocks have shown impressive growth potential in recent years, but their different business models and target markets make them appealing to different types of investors.

Amazon.com or Baozun?

When comparing Amazon.com and Baozun, 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 Baozun.

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 Baozun 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, Baozun 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 43.56 and Baozun's P/E ratio at -4.27. 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 8.38 while Baozun's P/B ratio is 0.29.

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 Baozun's is 0.64%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Baozun's ROE at -6.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $205.59 for Amazon.com and $2.60 for Baozun. Over the past year, Amazon.com's prices ranged from $139.52 to $212.25, with a yearly change of 52.13%. Baozun's prices fluctuated between $1.90 and $4.38, with a yearly change of 130.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.