Amazon.com vs Pinterest Which Performs Better?

Amazon.com and Pinterest are two popular e-commerce companies that operate in different niches of the online retail industry. Amazon.com is an e-commerce giant that offers a wide range of products and services, while Pinterest is a social media platform focused on visual inspiration and discovery. Both companies have attracted significant investor interest, but their stock performance and financial outlooks differ. This comparison will delve into the stock performance, financials, and growth prospects of Amazon.com and Pinterest to determine which may be the better investment option.

Amazon.com or Pinterest?

When comparing Amazon.com and Pinterest, 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 Pinterest.

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 Pinterest 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, Pinterest 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 47.90 and Pinterest's P/E ratio at 96.36. 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 9.22 while Pinterest's P/B ratio is 7.19.

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 Pinterest's is 2.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Pinterest's ROE at 7.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $225.86 for Amazon.com and $30.44 for Pinterest. Over the past year, Amazon.com's prices ranged from $144.05 to $231.20, with a yearly change of 60.50%. Pinterest's prices fluctuated between $27.00 and $45.19, with a yearly change of 67.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.