Amazon.com vs Booking Which Outperforms?

Amazon.com and Booking Holdings are two of the biggest names in the e-commerce and travel industries, respectively. While Amazon dominates the online retail space with its diverse product offerings and convenient shopping experience, Booking Holdings stands out as a leading online travel agency with a vast network of accommodations and travel services. Investors often compare the performance of these two stocks to gauge the health of the e-commerce and travel sectors, making it essential to analyze their financials, market trends, and growth prospects.

Amazon.com or Booking?

When comparing Amazon.com and Booking, 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 Booking.

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 Booking has a dividend yield of 0.7%. 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, Booking reports a 5-year dividend growth of 0.00% year and a payout ratio of 17.57%.

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 44.53 and Booking's P/E ratio at 32.97. 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 8.57 while Booking's P/B ratio is -45.45.

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 Booking's is 0.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Booking's ROE at -136.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $210.89 for Amazon.com and $4951.94 for Booking. Over the past year, Amazon.com's prices ranged from $139.52 to $215.90, with a yearly change of 54.74%. Booking's prices fluctuated between $3079.50 and $5069.44, with a yearly change of 64.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.