Grainger vs Amazon.com Which Offers More Value?

Grainger and Amazon.com are two well-known companies in the retail industry, but they cater to different markets. Grainger, a distributor of industrial and maintenance supplies, has been a staple in the industry for over 90 years. On the other hand, Amazon.com, the e-commerce giant, has revolutionized the way consumers shop online. Both companies have seen growth in their stocks over the years, but with different strategies and market focuses. This comparison aims to analyze and evaluate the performance and potential of these two stocks.

Grainger or Amazon.com?

When comparing Grainger 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 Grainger 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. Grainger has a dividend yield of 2.97%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Grainger reports a 5-year dividend growth of 5.47% year and a payout ratio of -4463.64%. 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 Grainger P/E ratio at -1550.00 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. Grainger P/B ratio is 0.90 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, Grainger has seen a 5-year revenue growth of 0.00%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Grainger's ROE at -0.06% 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 £231.00 for Grainger and $227.63 for Amazon.com. Over the past year, Grainger's prices ranged from £218.50 to £278.80, with a yearly change of 27.60%. 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.