Amazon.com vs eBay Which Is More Profitable?

Amazon.com and eBay are two giants in the world of online retail, with both companies revolutionizing the way consumers shop. However, when it comes to the stock market, these two companies have had diverging paths. Amazon.com's stock has consistently soared to new heights, driven by its innovative services and strong financial performance. eBay, on the other hand, has seen more volatile stock prices, as it navigates through changes in the online marketplace landscape. In this comparison, we will explore the factors driving the performance of Amazon.com and eBay stocks, and analyze which company may be the better investment option for investors.

Amazon.com or eBay?

When comparing Amazon.com and eBay, 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 eBay.

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 eBay has a dividend yield of 1.69%. 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, eBay reports a 5-year dividend growth of 0.00% year and a payout ratio of 26.44%.

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 eBay's P/E ratio at 15.39. 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 eBay's P/B ratio is 5.74.

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 eBay's is 0.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and eBay's ROE at 34.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $225.86 for Amazon.com and $63.50 for eBay. Over the past year, Amazon.com's prices ranged from $144.05 to $231.20, with a yearly change of 60.50%. eBay's prices fluctuated between $40.16 and $67.80, with a yearly change of 68.82%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.