Target vs Amazon.com Which Is More Profitable?

Target Corporation and Amazon.com are two major players in the retail industry, with both companies having a significant presence in the e-commerce market. Target, known for its brick-and-mortar stores, has been making strides in its online sales through investments in technology and partnerships. On the other hand, Amazon.com continues to dominate the online shopping space with its vast product offerings and expedited delivery services. Investors often compare the two stocks, analyzing factors such as revenue growth, profit margins, and market share to determine which may be a more lucrative investment.

Target or Amazon.com?

When comparing Target 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 Target 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. Target has a dividend yield of 2.85%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Target reports a 5-year dividend growth of 11.59% year and a payout ratio of 45.29%. 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 Target P/E ratio at 15.98 and Amazon.com's P/E ratio at 45.08. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Target P/B ratio is 4.97 while Amazon.com's P/B ratio is 8.68.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Target has seen a 5-year revenue growth of 0.63%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Target's ROE at 33.11% 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 $154.75 for Target and $209.25 for Amazon.com. Over the past year, Target's prices ranged from $124.88 to $181.86, with a yearly change of 45.63%. Amazon.com's prices fluctuated between $139.52 and $215.08, with a yearly change of 54.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.