Amazon.com vs Goldman Sachs Which Is Stronger?

Amazon.com and Goldman Sachs are two powerhouse companies in the financial world, each with its own unique strengths and weaknesses. Amazon.com, the e-commerce giant, is known for its revenue growth driven by its diverse product offerings and loyal customer base. On the other hand, Goldman Sachs, a leading investment bank, is recognized for its expertise in financial markets and wealth management services. Investors considering these stocks must weigh the potential for growth in Amazon.com against the stability and reputation of Goldman Sachs.

Amazon.com or Goldman Sachs?

When comparing Amazon.com and Goldman Sachs, 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 Goldman Sachs.

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 Goldman Sachs has a dividend yield of 1.96%. 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, Goldman Sachs reports a 5-year dividend growth of 27.23% year and a payout ratio of 36.22%.

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 Goldman Sachs's P/E ratio at 15.62. 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 Goldman Sachs's P/B ratio is 1.57.

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 Goldman Sachs's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Goldman Sachs's ROE at 10.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $225.86 for Amazon.com and $585.09 for Goldman Sachs. Over the past year, Amazon.com's prices ranged from $144.05 to $231.20, with a yearly change of 60.50%. Goldman Sachs's prices fluctuated between $372.07 and $612.73, with a yearly change of 64.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.