AMZN vs. NFLX, BKNG, EXPE, CHWY, W, NSIT, TRIP, CNXN, GRPN, and FLWS
Should you be buying Amazon.com stock or one of its competitors? The main competitors of Amazon.com include Netflix (NFLX), Booking (BKNG), Expedia Group (EXPE), Chewy (CHWY), Wayfair (W), Insight Enterprises (NSIT), Tripadvisor (TRIP), PC Connection (CNXN), Groupon (GRPN), and 1-800-FLOWERS.COM (FLWS).
Amazon.com (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX) are both large-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, community ranking, analyst recommendations, profitability, media sentiment, valuation, institutional ownership, earnings and dividends.
72.2% of Amazon.com shares are owned by institutional investors. Comparatively, 80.9% of Netflix shares are owned by institutional investors. 10.8% of Amazon.com shares are owned by company insiders. Comparatively, 1.8% of Netflix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Amazon.com has higher revenue and earnings than Netflix. Netflix is trading at a lower price-to-earnings ratio than Amazon.com, indicating that it is currently the more affordable of the two stocks.
Netflix has a net margin of 18.42% compared to Amazon.com's net margin of 6.38%. Netflix's return on equity of 29.62% beat Amazon.com's return on equity.
Amazon.com has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Netflix has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.
Amazon.com received 1846 more outperform votes than Netflix when rated by MarketBeat users. However, 64.82% of users gave Netflix an outperform vote while only 58.56% of users gave Amazon.com an outperform vote.
In the previous week, Amazon.com had 56 more articles in the media than Netflix. MarketBeat recorded 117 mentions for Amazon.com and 61 mentions for Netflix. Amazon.com's average media sentiment score of 0.65 beat Netflix's score of 0.47 indicating that Amazon.com is being referred to more favorably in the media.
Amazon.com currently has a consensus target price of $212.40, indicating a potential upside of 20.38%. Netflix has a consensus target price of $632.00, indicating a potential downside of 1.50%. Given Amazon.com's stronger consensus rating and higher possible upside, equities analysts clearly believe Amazon.com is more favorable than Netflix.
Summary
Amazon.com beats Netflix on 11 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding AMZN and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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