Amazon.com vs Netflix Which Is More Lucrative?

Amazon.com and Netflix are two powerhouse companies in the tech and entertainment industries, with both being highly successful in their respective fields. While Amazon is known for its e-commerce empire and cloud computing services, Netflix has revolutionized the way we consume entertainment with its streaming platform. Both companies have seen tremendous growth in recent years, but their stocks have experienced ups and downs. Investors and analysts are constantly comparing the performance of Amazon.com and Netflix stocks, as they navigate the ever-changing market dynamics and consumer preferences.

Amazon.com or Netflix?

When comparing Amazon.com and Netflix, 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 Netflix.

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 Netflix 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, Netflix 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 47.81 and Netflix's P/E ratio at 51.45. 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 9.20 while Netflix's P/B ratio is 17.62.

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 Netflix's is 1.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Netflix's ROE at 35.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $220.60 for Amazon.com and $912.71 for Netflix. Over the past year, Amazon.com's prices ranged from $143.64 to $227.13, with a yearly change of 58.12%. Netflix's prices fluctuated between $450.76 and $935.27, with a yearly change of 107.49%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.