Amazon.com vs Sysco Which Should You Buy?

Amazon.com and Sysco are two powerhouse companies in the world of e-commerce and food distribution. While Amazon.com is known for its massive online retail presence, Sysco dominates the food service industry as a leading distributor of food products. Both companies have seen their stocks perform well in recent years, but each has faced its own challenges and opportunities. Investors looking to diversify their portfolios may find these two stocks to be compelling options for growth and stability in different sectors of the economy.

Amazon.com or Sysco?

When comparing Amazon.com and Sysco, 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 Sysco.

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 Sysco has a dividend yield of 2.5%. 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, Sysco reports a 5-year dividend growth of 6.58% year and a payout ratio of 51.82%.

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 47.39 and Sysco's P/E ratio at 20.48. 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 9.12 while Sysco's P/B ratio is 18.02.

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 Sysco's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Sysco's ROE at 90.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $224.20 for Amazon.com and $80.10 for Sysco. Over the past year, Amazon.com's prices ranged from $144.05 to $230.08, with a yearly change of 59.72%. Sysco's prices fluctuated between $69.03 and $82.89, with a yearly change of 20.08%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.