Amazon.com vs Hostelworld Which Is More Lucrative?

When considering investments in the e-commerce and travel industries, two major players that often come to mind are Amazon.com and Hostelworld. Amazon, the retail giant, has seen tremendous growth over the years, fueled by its diverse product offerings and loyal customer base. Hostelworld, on the other hand, is a leading booking platform for budget accommodation, catering to the budget-savvy traveler. Both companies operate in competitive markets, but offer investors different opportunities for growth and potential returns.

Amazon.com or Hostelworld?

When comparing Amazon.com and Hostelworld, 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 Hostelworld.

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 Hostelworld 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, Hostelworld 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 47.90 and Hostelworld's P/E ratio at 14.44. 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 Hostelworld's P/B ratio is 3.50.

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 Hostelworld's is -0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Hostelworld's ROE at 24.88%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $225.86 for Amazon.com and €1.70 for Hostelworld. Over the past year, Amazon.com's prices ranged from $144.05 to $231.20, with a yearly change of 60.50%. Hostelworld's prices fluctuated between €1.48 and €2.00, with a yearly change of 35.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.