Amazon.com vs Sea Which Is More Profitable?

Amazon.com and Sea Limited are two prominent players in the e-commerce industry, each with its own unique strengths and market positioning. Amazon, known for its vast product offerings and swift delivery services, has established itself as a global leader in online retail. Sea Limited, on the other hand, focuses on the Southeast Asian market and has seen rapid growth in recent years, particularly in its gaming and digital financial services divisions. Both companies have captured investor attention, but each offers a distinct investment opportunity.

Amazon.com or Sea?

When comparing Amazon.com and Sea, 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 Sea.

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 Sea 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, Sea 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 46.44 and Sea's P/E ratio at 684.78. 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 8.94 while Sea's P/B ratio is 8.72.

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 Sea's is 8.44%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Sea's ROE at 1.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $217.30 for Amazon.com and $116.09 for Sea. Over the past year, Amazon.com's prices ranged from $143.64 to $222.15, with a yearly change of 54.66%. Sea's prices fluctuated between $34.35 and $118.56, with a yearly change of 245.15%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.