Amazon.com vs LightInTheBox Which Is More Profitable?

Amazon.com and LightInTheBox are two well-known e-commerce companies that offer a wide range of products to consumers worldwide. While Amazon is widely recognized as the largest online retailer in the world, LightInTheBox is a smaller, lesser-known player in the market. Investors may be interested in comparing the stocks of these two companies to evaluate their potential for growth and profitability. By examining key financial metrics, market trends, and competitive advantages, investors can make informed decisions about investing in Amazon.com vs LightInTheBox stocks.

Amazon.com or LightInTheBox?

When comparing Amazon.com and LightInTheBox, 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 LightInTheBox.

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 LightInTheBox 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, LightInTheBox 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 47.61 and LightInTheBox's P/E ratio at -4.47. 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 9.16 while LightInTheBox's P/B ratio is -2.44.

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 LightInTheBox'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 LightInTheBox's ROE at 74.27%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $225.69 for Amazon.com and $1.76 for LightInTheBox. Over the past year, Amazon.com's prices ranged from $143.64 to $230.08, with a yearly change of 60.18%. LightInTheBox's prices fluctuated between $1.64 and $7.32, with a yearly change of 346.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.