Amazon.com vs Wayfair Which Is Superior?

Amazon.com and Wayfair are two prominent players in the e-commerce industry, but they cater to different markets. Amazon is a global online retail behemoth known for its wide array of products and fast delivery options. On the other hand, Wayfair specializes in home goods and furniture, offering a unique shopping experience for consumers looking to furnish their homes. Both companies have seen significant growth in their stock prices in recent years, but their strategies and target markets vary, leading to contrasting performances in the stock market.

Amazon.com or Wayfair?

When comparing Amazon.com and Wayfair, 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 Wayfair.

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 Wayfair 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, Wayfair 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 Wayfair's P/E ratio at -8.80. 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 Wayfair's P/B ratio is -1.73.

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 Wayfair's is 0.39%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Wayfair's ROE at 19.52%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $209.25 for Amazon.com and $38.38 for Wayfair. Over the past year, Amazon.com's prices ranged from $139.52 to $215.08, with a yearly change of 54.16%. Wayfair's prices fluctuated between $37.51 and $76.17, with a yearly change of 103.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.