NVIDIA vs Amazon.com Which Is More Reliable?

NVIDIA and Amazon.com are two tech giants in the stock market that have captured the attention of investors worldwide. NVIDIA is known for its cutting-edge graphics processing units (GPUs) that power a wide range of industries, while Amazon.com is the dominant force in e-commerce and cloud computing. Both companies have shown consistent growth and innovation, but their stock performance can vary due to different market factors. In this analysis, we will compare and contrast the performance of NVIDIA and Amazon.com stocks to provide insights for investors.

NVIDIA or Amazon.com?

When comparing NVIDIA 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 NVIDIA 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. NVIDIA has a dividend yield of 0.03%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NVIDIA reports a 5-year dividend growth of -23.48% year and a payout ratio of 1.09%. 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 NVIDIA P/E ratio at 52.22 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. NVIDIA P/B ratio is 49.98 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, NVIDIA has seen a 5-year revenue growth of 1.68%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NVIDIA's ROE at 116.71% 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 $132.54 for NVIDIA and $225.86 for Amazon.com. Over the past year, NVIDIA's prices ranged from $47.32 to $152.89, with a yearly change of 223.10%. 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.