McDonald's vs Amazon.com Which Is More Lucrative?

McDonald's and Amazon.com are two well-known companies in the world of investing. Both have experienced significant growth in recent years, but they operate in very different industries. McDonald's is a fast-food giant with a long history of success, while Amazon.com is an e-commerce powerhouse disrupting traditional retail. Investors must consider the unique strengths and challenges of each company when deciding where to place their money. Let's delve deeper into the performance of McDonald's vs Amazon.com stocks.

McDonald's or Amazon.com?

When comparing McDonald's 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 McDonald's 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. McDonald's has a dividend yield of 2.29%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. McDonald's reports a 5-year dividend growth of 8.26% year and a payout ratio of 58.34%. 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 McDonald's P/E ratio at 25.78 and Amazon.com's P/E ratio at 47.90. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. McDonald's P/B ratio is -41.06 while Amazon.com's P/B ratio is 9.22.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, McDonald's has seen a 5-year revenue growth of 0.30%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with McDonald's's ROE at -168.78% 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 $295.75 for McDonald's and $225.86 for Amazon.com. Over the past year, McDonald's's prices ranged from $243.53 to $317.90, with a yearly change of 30.54%. 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.