Amazon.com vs GameStop Which Performs Better?

Amazon.com and GameStop are two popular stocks in the retail sector that have seen significant fluctuations in recent years. Amazon.com is known for its dominance in e-commerce and cloud computing, while GameStop is a retail video game and consumer electronics company. Both stocks have attracted attention from investors due to their potential for growth and volatility in the market. Understanding the differences and similarities between these two stocks can help investors make informed decisions about their portfolios.

Amazon.com or GameStop?

When comparing Amazon.com and GameStop, 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 GameStop.

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 GameStop 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, GameStop 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 48.22 and GameStop's P/E ratio at 199.61. 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 9.28 while GameStop's P/B ratio is 2.62.

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 GameStop's is -0.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and GameStop's ROE at 2.13%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $227.63 for Amazon.com and $28.58 for GameStop. Over the past year, Amazon.com's prices ranged from $144.05 to $231.20, with a yearly change of 60.50%. GameStop's prices fluctuated between $9.95 and $64.83, with a yearly change of 551.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.