Intuit vs Amazon.com

Intuit and Amazon.com are two prominent technology companies that have seen significant growth in their stock prices in recent years. Intuit, known for its financial software products like QuickBooks and TurboTax, has seen strong performance due to its steady revenue streams and expanding customer base. On the other hand, Amazon.com, the e-commerce giant, has experienced exponential growth driven by its dominance in online shopping and cloud computing services. Both companies offer compelling investment opportunities, but they cater to different sectors of the market with distinct growth trajectories.

Intuit or Amazon.com?

When comparing Intuit 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 Intuit 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. Intuit has a dividend yield of 0.77%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Intuit reports a 5-year dividend growth of 14.59% year and a payout ratio of 34.90%. 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 Intuit P/E ratio at 58.39 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. Intuit P/B ratio is 9.38 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, Intuit has seen a 5-year revenue growth of 1.19%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Intuit's ROE at 16.67% 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 $615.76 for Intuit and $184.58 for Amazon.com. Over the past year, Intuit's prices ranged from $473.56 to $676.62, with a yearly change of 42.88%. 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.