Shoprite vs Amazon.com

Shoprite and Amazon.com are two prominent companies in the retail industry that have attracted significant attention from investors. Shoprite is a well-established supermarket chain in South Africa that has been expanding its presence across the continent. On the other hand, Amazon.com is a global e-commerce giant that has revolutionized the way people shop online. Both companies have seen impressive growth in their stocks, but they operate in different markets and face unique challenges. This comparison will analyze the performance and potential of Shoprite and Amazon.com stocks.

Shoprite or Amazon.com?

When comparing Shoprite 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 Shoprite 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. Shoprite has a dividend yield of 1.15%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Shoprite reports a 5-year dividend growth of -7.20% year and a payout ratio of 55.31%. 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 Shoprite P/E ratio at 18.94 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. Shoprite P/B ratio is 0.33 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, Shoprite has seen a 5-year revenue growth of 0.52%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Shoprite's ROE at 1.79% 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 $16.92 for Shoprite and $184.58 for Amazon.com. Over the past year, Shoprite's prices ranged from $11.73 to $18.16, with a yearly change of 54.82%. 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.