Zalando vs Amazon.com Which Is Superior?

Both Zalando and Amazon.com are key players in the e-commerce industry, but they have distinct differences in their business models and market strategies. Zalando, a European online fashion retailer, has been growing steadily in recent years and has become a popular choice for consumers looking for trendy clothing and footwear. On the other hand, Amazon.com, the global e-commerce giant, offers a wide range of products and services beyond just fashion. Investors may want to compare these two stocks to determine which one offers better growth potential and profitability in the long run.

Zalando or Amazon.com?

When comparing Zalando 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 Zalando 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. Zalando 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. Zalando 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 Zalando P/E ratio at 21.93 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. Zalando P/B ratio is 1.79 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, Zalando has seen a 5-year revenue growth of 2.74%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Zalando's ROE at 8.38% 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 $18.06 for Zalando and $225.86 for Amazon.com. Over the past year, Zalando's prices ranged from $8.68 to $18.67, with a yearly change of 115.09%. 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.