Amazon.com vs Expedia Which Is More Reliable?

Amazon.com and Expedia are two well-known companies in the e-commerce and travel industries respectively. Both companies have experienced significant growth over the years, attracting investors' attention. Amazon.com, known for its diverse range of products and services, has consistently shown strong financial performance, while Expedia, a leading online travel agency, has faced challenges due to disruptions in the travel industry. Investors are eager to compare the potential of these two stocks and determine which one may offer more promising returns in the future.

Amazon.com or Expedia?

When comparing Amazon.com and Expedia, 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 Expedia.

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 Expedia 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, Expedia 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 47.81 and Expedia's P/E ratio at 23.19. 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 9.20 while Expedia's P/B ratio is 18.72.

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 Expedia's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Expedia's ROE at 92.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $220.60 for Amazon.com and $189.48 for Expedia. Over the past year, Amazon.com's prices ranged from $143.64 to $227.13, with a yearly change of 58.12%. Expedia's prices fluctuated between $107.25 and $192.28, with a yearly change of 79.28%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.