eBay vs Amazon.com Which Is More Favorable?

eBay and Amazon.com are two of the most prominent players in the e-commerce industry, both offering a vast array of products and services to customers worldwide. While eBay has been a pioneer in online auctions and marketplace platforms, Amazon.com has revolutionized the way people shop with its vast selection, competitive prices, and fast delivery options. Investors often compare the stocks of these two giants, analyzing factors such as revenue growth, profit margins, and market share to determine the best investment opportunity.

eBay or Amazon.com?

When comparing eBay 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 eBay 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. eBay has a dividend yield of 1.62%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. eBay reports a 5-year dividend growth of 14.04% year and a payout ratio of 26.99%. 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 eBay P/E ratio at 16.07 and Amazon.com's P/E ratio at 37.11. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. eBay P/B ratio is 6.15 while Amazon.com's P/B ratio is 7.69.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, eBay has seen a 5-year revenue growth of 1.37%, while Amazon.com's is 1.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with eBay's ROE at 35.31% and Amazon.com's ROE at 23.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $65.19 for eBay and $203.26 for Amazon.com. Over the past year, eBay's prices ranged from $48.52 to $71.61, with a yearly change of 47.59%. Amazon.com's prices fluctuated between $151.61 and $242.52, with a yearly change of 59.96%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.