BlackRock vs Amazon.com Which Is More Profitable?

Both BlackRock and Amazon.com are powerhouse companies in their respective industries. BlackRock is the world's largest asset management company, while Amazon.com is a dominant player in e-commerce, cloud computing, and streaming services. Investors looking to compare the two stocks will find BlackRock offering stability and consistent returns, while Amazon.com offers robust growth potential but with higher volatility. Understanding the unique characteristics and performance metrics of each stock is crucial for making informed investment decisions.

BlackRock or Amazon.com?

When comparing BlackRock 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 BlackRock 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. BlackRock has a dividend yield of 2.43%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BlackRock reports a 5-year dividend growth of 10.72% year and a payout ratio of 50.12%. 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 BlackRock P/E ratio at 25.52 and Amazon.com's P/E ratio at 42.66. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BlackRock P/B ratio is 3.87 while Amazon.com's P/B ratio is 8.21.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BlackRock has seen a 5-year revenue growth of 0.36%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BlackRock's ROE at 15.40% 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 $1038.49 for BlackRock and $199.62 for Amazon.com. Over the past year, BlackRock's prices ranged from $712.11 to $1068.34, with a yearly change of 50.02%. Amazon.com's prices fluctuated between $141.50 and $215.90, with a yearly change of 52.58%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.