ASOS vs Amazon.com Which Should You Buy?

ASOS and Amazon.com are two popular e-commerce companies that investors often compare when considering investing in the retail sector. ASOS is a British online fashion and beauty retailer, known for its trendy and affordable clothing options. On the other hand, Amazon.com is a global e-commerce giant that offers a wide range of products and services. Both companies have experienced significant growth in recent years, but they operate in different markets and cater to different demographics. Investors should carefully research and analyze the financial performance and prospects of each company before making investment decisions.

ASOS or Amazon.com?

When comparing ASOS and Amazon.com, 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 ASOS and Amazon.com.

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. ASOS has a dividend yield of -%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ASOS reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Amazon.com 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 ASOS P/E ratio at -1.94 and Amazon.com's P/E ratio at 48.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ASOS P/B ratio is 0.92 while Amazon.com's P/B ratio is 9.28.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ASOS has seen a 5-year revenue growth of 0.17%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASOS's ROE at -43.49% and Amazon.com's ROE at 21.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.00 for ASOS and $227.63 for Amazon.com. Over the past year, ASOS's prices ranged from $4.11 to $5.89, with a yearly change of 43.31%. Amazon.com's prices fluctuated between $144.05 and $231.20, with a yearly change of 60.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.