Amazon.com vs Coupang Which Is More Promising?

Amazon.com and Coupang are two major players in the e-commerce industry, both competing for market share and investor interest. Amazon, the American giant, has established itself as a global powerhouse with a diverse range of products and services. Coupang, on the other hand, is a South Korean company rapidly growing in popularity thanks to its innovative delivery services and customer-centric approach. Investors are torn between these two stocks, each offering unique opportunities and risks in the competitive online retail market.

Amazon.com or Coupang?

When comparing Amazon.com and Coupang, 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 Coupang.

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 Coupang 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, Coupang 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 Coupang's P/E ratio at 42.15. 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 Coupang's P/B ratio is 10.30.

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 Coupang's is 4.40%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Coupang's ROE at 25.27%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $205.59 for Amazon.com and $23.61 for Coupang. Over the past year, Amazon.com's prices ranged from $139.52 to $212.25, with a yearly change of 52.13%. Coupang's prices fluctuated between $13.51 and $26.91, with a yearly change of 99.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.