Amazon.com vs Intuit Which Offers More Value?

Amazon.com and Intuit are two powerhouse companies in the tech and e-commerce sectors that have shown strong growth and innovation over the years. Amazon.com, the giant online retailer, has seen its stock soar as it continues to expand its offerings and dominate various markets. In contrast, Intuit, known for its financial software products like QuickBooks, has also experienced steady growth and success in its niche. Investors looking to diversify their portfolios may consider these two stocks for their potential long-term growth and stability.

Amazon.com or Intuit?

When comparing Amazon.com and Intuit, 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 Intuit.

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 Intuit has a dividend yield of 0.69%. 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, Intuit reports a 5-year dividend growth of 14.59% year and a payout ratio of 34.90%.

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 Intuit's P/E ratio at 65.90. 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 Intuit's P/B ratio is 10.59.

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 Intuit's is 1.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Intuit's ROE at 16.67%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $205.59 for Amazon.com and $682.30 for Intuit. Over the past year, Amazon.com's prices ranged from $139.52 to $212.25, with a yearly change of 52.13%. Intuit's prices fluctuated between $523.32 and $698.96, with a yearly change of 33.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.