Analyzing Amazon.com (AMZN) & Liberty Interactive Corporation (QVCA)
Amazon.com (NASDAQ: AMZN) and Liberty Interactive Corporation (NASDAQ:QVCA) are both large-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.
Risk & Volatility
Amazon.com has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Liberty Interactive Corporation has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.
Institutional and Insider Ownership
60.8% of Amazon.com shares are owned by institutional investors. Comparatively, 88.9% of Liberty Interactive Corporation shares are owned by institutional investors. 17.7% of Amazon.com shares are owned by company insiders. Comparatively, 10.7% of Liberty Interactive Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Amazon.com and Liberty Interactive Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Liberty Interactive Corporation||4.47%||10.65%||3.71%|
Earnings & Valuation
This table compares Amazon.com and Liberty Interactive Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Amazon.com||$150.12 billion||3.09||$12.30 billion||$3.94||245.15|
|Liberty Interactive Corporation||$10.10 billion||1.01||$1.78 billion||$0.97||23.38|
Amazon.com has higher revenue and earnings than Liberty Interactive Corporation. Liberty Interactive Corporation is trading at a lower price-to-earnings ratio than Amazon.com, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Amazon.com and Liberty Interactive Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Liberty Interactive Corporation||0||1||7||0||2.88|
Amazon.com currently has a consensus price target of $1,092.02, suggesting a potential upside of 13.06%. Liberty Interactive Corporation has a consensus price target of $29.57, suggesting a potential upside of 30.39%. Given Liberty Interactive Corporation’s higher possible upside, analysts clearly believe Liberty Interactive Corporation is more favorable than Amazon.com.
Amazon.com beats Liberty Interactive Corporation on 10 of the 15 factors compared between the two stocks.
Amazon.com, Inc. offers a range of products and services through its Websites. The Company operates through three segments: North America, International and Amazon Web Services (AWS). The Company’s products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It also manufactures and sells electronic devices. The Company, through its subsidiary, Whole Foods Market, Inc., offers healthy and organic food and staples across its stores. The Company also offers a range of products like whole trade bananas, organic avocados, organic large brown eggs, organic responsibly-farmed salmon and tilapia, organic baby kale and baby lettuce, animal-welfare-rated 85% lean ground beef, creamy and crunchy almond butter, organic gala and fuji apples, organic rotisserie chicken.
About Liberty Interactive Corporation
Liberty Interactive Corporation owns interests in subsidiaries and other companies, which are primarily engaged in the video and online commerce industries. Through its subsidiaries and affiliates, the Company operates in North America, Europe and Asia. Its principal businesses and assets include its subsidiaries QVC, Inc. (QVC), zulily, llc (zulily) and and Evite, Inc. (Evite). The Company’s segments include QVC, zulily, and Corporate and other. Evite is an online invitation and social event planning service on the Web. As of December 31, 2016, QVC marketed and sold a range of consumer products primarily through live merchandise-focused televised shopping programs distributed to approximately 362 million households each day and through its Websites, including QVC.com, and other interactive media, such as mobile applications. Zulily’s merchandise includes women’s, children’s and men’s apparel, children’s merchandise and other products, such as kitchen accessories and home decor.
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