Amazon.com vs Wells Fargo & Which Is a Better Investment?

Amazon.com and Wells Fargo are two titans in the world of finance and investing. While Amazon.com is known for its e-commerce dominance and diverse portfolio of products and services, Wells Fargo is a major player in the financial services industry with a long history of providing banking, lending, and investment services. When it comes to stocks, both companies have seen fluctuations in their stock prices over the years, with investors closely monitoring their performance and growth potential. In this comparison, we will delve into the differences between Amazon.com and Wells Fargo in terms of their stock performance and the factors that may influence their future success in the market.

Amazon.com or Wells Fargo &?

When comparing Amazon.com and Wells Fargo &, 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 Wells Fargo &.

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 Wells Fargo & has a dividend yield of 2.56%. 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, Wells Fargo & reports a 5-year dividend growth of -4.54% year and a payout ratio of 34.33%.

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 42.66 and Wells Fargo &'s P/E ratio at 13.91. 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 8.21 while Wells Fargo &'s P/B ratio is 1.37.

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 Wells Fargo &'s is 0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Wells Fargo &'s ROE at 9.96%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $199.62 for Amazon.com and $72.90 for Wells Fargo &. Over the past year, Amazon.com's prices ranged from $141.50 to $215.90, with a yearly change of 52.58%. Wells Fargo &'s prices fluctuated between $42.15 and $74.41, with a yearly change of 76.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.