Wells Fargo & vs Amazon.com Which Is More Profitable?

Wells Fargo & Company and Amazon.com are two prominent companies in the financial and e-commerce industries, respectively. Wells Fargo is a multinational financial services company, while Amazon.com is a leading online retailer and tech giant. Both companies are publicly traded on the stock market and have experienced fluctuations in their stock prices over time. Investors may choose to invest in either company based on their financial performance, growth potential, and overall market trends.

Wells Fargo & or Amazon.com?

When comparing Wells Fargo & 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 Wells Fargo & 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. Wells Fargo & has a dividend yield of 2.12%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Wells Fargo & reports a 5-year dividend growth of -4.54% year and a payout ratio of 34.33%. 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 Wells Fargo & P/E ratio at 13.25 and Amazon.com's P/E ratio at 48.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Wells Fargo & P/B ratio is 1.31 while Amazon.com's P/B ratio is 9.28.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Wells Fargo & has seen a 5-year revenue growth of 0.16%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Wells Fargo &'s ROE at 9.96% 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 $70.79 for Wells Fargo & and $227.63 for Amazon.com. Over the past year, Wells Fargo &'s prices ranged from $46.12 to $78.13, with a yearly change of 69.41%. 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.