Amazon.com vs Zalando Which Performs Better?

Amazon.com and Zalando are two giant e-commerce companies that have gained significant popularity among investors in recent years. Both companies have shown strong growth and have become dominant players in their respective markets. Amazon.com is a global leader in online shopping, offering a wide range of products and services, while Zalando focuses on fashion and lifestyle products in Europe. Investors are closely watching these stocks as they navigate through the ever-changing retail landscape and compete for market share.

Amazon.com or Zalando?

When comparing Amazon.com and Zalando, 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 Zalando.

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 Zalando 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, Zalando 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 Zalando's P/E ratio at 23.47. 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 Zalando's P/B ratio is 1.46.

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 Zalando's is 2.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Zalando's ROE at 6.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $209.25 for Amazon.com and $14.50 for Zalando. Over the past year, Amazon.com's prices ranged from $139.52 to $215.08, with a yearly change of 54.16%. Zalando's prices fluctuated between $8.68 and $17.10, with a yearly change of 97.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.