FedEx vs Amazon.com

FedEx and Amazon.com are two prominent players in the e-commerce and logistics industries. While FedEx is a global shipping and courier services company established in 1971, Amazon.com is an e-commerce giant founded in 1994 that has grown exponentially to dominate the online retail market. Both companies have seen impressive growth in their respective stock performance over the years, with FedEx focusing on its global delivery network and Amazon.com expanding its services to include cloud computing and streaming services. Investors often compare the two stocks to assess their potential for long-term profitability and growth.

FedEx or Amazon.com?

When comparing FedEx 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 FedEx 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. FedEx has a dividend yield of 1.99%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. FedEx reports a 5-year dividend growth of 15.01% year and a payout ratio of 31.63%. 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 FedEx P/E ratio at 16.23 and Amazon.com's P/E ratio at 44.14. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. FedEx P/B ratio is 2.42 while Amazon.com's P/B ratio is 8.29.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, FedEx has seen a 5-year revenue growth of 0.45%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with FedEx's ROE at 15.00% and Amazon.com's ROE at 21.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $265.66 for FedEx and $184.58 for Amazon.com. Over the past year, FedEx's prices ranged from $224.69 to $313.84, with a yearly change of 39.68%. Amazon.com's prices fluctuated between $118.35 and $201.20, with a yearly change of 70.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.