Reliance Industries vs Amazon.com Which Is More Profitable?

Reliance Industries and Amazon.com are two giants in the global stock market, each representing distinct sectors and geographical locations. Reliance Industries, based in India, is a diversified conglomerate with interests in refining, petrochemicals, telecommunications, and retail. On the other hand, Amazon.com, a US-based e-commerce behemoth, dominates the online retail industry and has a growing presence in cloud computing and digital streaming services. Both companies have seen impressive growth in recent years, but face different sets of challenges and opportunities in their respective markets.

Reliance Industries or Amazon.com?

When comparing Reliance Industries 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 Reliance Industries 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. Reliance Industries has a dividend yield of 0.0%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Reliance Industries reports a 5-year dividend growth of 89.68% 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 Reliance Industries P/E ratio at 25.06 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. Reliance Industries P/B ratio is 2.08 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, Reliance Industries 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 Reliance Industries's ROE at 7.95% 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 $59.20 for Reliance Industries and $225.86 for Amazon.com. Over the past year, Reliance Industries's prices ranged from $51.50 to $83.90, with a yearly change of 62.91%. 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.