Amazon.com vs HomeToGo Which Is a Smarter Choice?

Amazon.com and HomeToGo are two prominent companies in the e-commerce and travel industries, respectively. Amazon.com, known for its diverse range of products and services, has experienced exponential growth in recent years, making its stock a popular choice among investors. HomeToGo, on the other hand, is a fast-growing vacation rental search engine, offering users a one-stop platform to search and compare properties from various providers. Both companies present unique investment opportunities, each with its own strengths and potential for growth.

Amazon.com or HomeToGo?

When comparing Amazon.com and HomeToGo, 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 HomeToGo.

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 HomeToGo 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, HomeToGo 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 HomeToGo's P/E ratio at -12.20. 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 HomeToGo's P/B ratio is 1.12.

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 HomeToGo's is 2.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and HomeToGo's ROE at -8.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $205.59 for Amazon.com and €2.09 for HomeToGo. Over the past year, Amazon.com's prices ranged from $139.52 to $212.25, with a yearly change of 52.13%. HomeToGo's prices fluctuated between €1.60 and €2.84, with a yearly change of 77.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.