Amazon.com vs Overstock.com Which Is Superior?

Amazon.com and Overstock.com are two giant e-commerce companies that dominate the online retail industry. Both companies have shown impressive growth and profitability over the years, but their stocks have experienced different trajectories. Amazon.com's stock price has skyrocketed, driven by its diverse product offerings, innovative technology, and strong market presence. On the other hand, Overstock.com has faced challenges and fluctuations in its stock price, despite its efforts to compete with industry leaders. Investors are closely watching both companies to see where their stocks will go next.

Amazon.com or Overstock.com?

When comparing Amazon.com and Overstock.com, 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 Overstock.com.

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 Overstock.com 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, Overstock.com 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 45.08 and Overstock.com's P/E ratio at -0.86. 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 8.68 while Overstock.com's P/B ratio is 1.48.

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 Overstock.com's is -0.43%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Overstock.com's ROE at -123.84%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $209.25 for Amazon.com and $6.33 for Overstock.com. Over the past year, Amazon.com's prices ranged from $139.52 to $215.08, with a yearly change of 54.16%. Overstock.com's prices fluctuated between $6.33 and $39.18, with a yearly change of 518.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.