Wayfair vs Amazon.com Which Is More Favorable?

Wayfair and Amazon.com are two prominent players in the e-commerce industry, each offering a wide range of products to consumers worldwide. Both companies have experienced significant growth in recent years, with Wayfair specializing in furniture and home goods while Amazon.com is known for its diverse marketplace offerings. Investors have been closely monitoring the performance of these stocks, analyzing factors such as revenue growth, profitability, and competitive positioning. Understanding the unique strengths and challenges of each company is crucial for investors seeking to make informed decisions in the ever-evolving e-commerce sector.

Wayfair or Amazon.com?

When comparing Wayfair 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 Wayfair 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. Wayfair 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. Wayfair 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 Wayfair P/E ratio at -11.95 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. Wayfair P/B ratio is -2.35 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, Wayfair has seen a 5-year revenue growth of 0.39%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Wayfair's ROE at 19.52% 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 $51.73 for Wayfair and $225.86 for Amazon.com. Over the past year, Wayfair's prices ranged from $37.35 to $76.17, with a yearly change of 103.95%. 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.