Amazon.com vs Infosys Which Outperforms?

Amazon.com and Infosys are two powerhouse companies in the world of investments. While Amazon.com is known for its e-commerce dominance, cloud computing services, and innovative technology products, Infosys is a global leader in IT consulting and services. Both companies have seen substantial growth in recent years, making them attractive options for investors looking to diversify their portfolios. Understanding the differences in their business models, growth prospects, and market trends can help investors make informed decisions about investing in Amazon.com vs Infosys stocks.

Amazon.com or Infosys?

When comparing Amazon.com and Infosys, 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 Infosys.

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 Infosys has a dividend yield of 2.52%. 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, Infosys reports a 5-year dividend growth of -5.23% year and a payout ratio of 70.72%.

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 47.39 and Infosys's P/E ratio at 29.41. 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 9.12 while Infosys's P/B ratio is 8.81.

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 Infosys's is 0.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Infosys's ROE at 31.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $224.20 for Amazon.com and $22.96 for Infosys. Over the past year, Amazon.com's prices ranged from $144.05 to $230.08, with a yearly change of 59.72%. Infosys's prices fluctuated between $16.04 and $23.48, with a yearly change of 46.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.