Overstock.com vs Amazon.com Which Is More Promising?

Overstock.com and Amazon.com are two major players in the e-commerce sector, each offering a wide range of products and services to consumers around the world. Both companies have seen significant growth in their stock prices over the years, but they have distinct business models and strategies. Overstock.com is known for its focus on discounted merchandise and niche markets, while Amazon.com dominates the market with its diverse product offerings and vast infrastructure. Investors often compare the two companies' stock performance and financial health to determine which may be a better investment opportunity.

Overstock.com or Amazon.com?

When comparing Overstock.com 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 Overstock.com 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. Overstock.com has a dividend yield of -%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Overstock.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Overstock.com P/E ratio at -0.72 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. Overstock.com P/B ratio is 1.24 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, Overstock.com has seen a 5-year revenue growth of -0.43%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Overstock.com's ROE at -123.84% 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 $5.30 for Overstock.com and $225.86 for Amazon.com. Over the past year, Overstock.com's prices ranged from $5.30 to $39.18, with a yearly change of 639.20%. 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.