Amazon.com vs Target

Amazon.com and Target are two retail giants that have been dominating the stock market in recent years. Amazon.com is known for its vast e-commerce empire and innovative technology ventures, while Target boasts a strong brick-and-mortar presence and loyal customer base. Both companies have experienced growth in their stock prices, but have taken different paths to get there. In this comparison, we will analyze the key differences and similarities between Amazon.com and Target stocks, examining their performance, strategies, and potential for future growth.

Amazon.com or Target?

When comparing Amazon.com and Target, 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 Target.

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 Target has a dividend yield of 2.75%. 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, Target reports a 5-year dividend growth of 11.59% year and a payout ratio of 45.29%.

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 44.14 and Target's P/E ratio at 16.56. 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 8.29 while Target's P/B ratio is 5.15.

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 Target's is 0.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.20% and Target's ROE at 33.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $184.58 for Amazon.com and $158.54 for Target. Over the past year, Amazon.com's prices ranged from $118.35 to $201.20, with a yearly change of 70.00%. Target's prices fluctuated between $105.23 and $181.86, with a yearly change of 72.82%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.