Auto Trader Group (OTCMKTS:ATDRY – Get Free Report) and Amazon.com (NASDAQ:AMZN – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.
Valuation & Earnings
This table compares Auto Trader Group and Amazon.com”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Auto Trader Group | $836.74 million | 5.97 | $393.91 million | N/A | N/A |
| Amazon.com | $716.92 billion | 3.49 | $77.67 billion | $8.36 | 27.83 |
Volatility and Risk
Auto Trader Group has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Amazon.com has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.
Profitability
This table compares Auto Trader Group and Amazon.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Auto Trader Group | N/A | N/A | N/A |
| Amazon.com | 12.22% | 19.92% | 9.86% |
Insider & Institutional Ownership
0.0% of Auto Trader Group shares are owned by institutional investors. Comparatively, 72.2% of Amazon.com shares are owned by institutional investors. 8.9% of Amazon.com shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and target prices for Auto Trader Group and Amazon.com, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Auto Trader Group | 1 | 3 | 1 | 0 | 2.00 |
| Amazon.com | 0 | 3 | 57 | 0 | 2.95 |
Amazon.com has a consensus target price of $312.78, suggesting a potential upside of 34.42%. Given Amazon.com’s stronger consensus rating and higher possible upside, analysts plainly believe Amazon.com is more favorable than Auto Trader Group.
Summary
Amazon.com beats Auto Trader Group on 11 of the 12 factors compared between the two stocks.
About Auto Trader Group
Auto Trader Group plc operates in the digital automotive marketplace in the United Kingdom and Ireland. The company provides vehicle advertisement on its websites for private sellers, as well as insurance and loan financing products to consumers; and display advertising on its websites for manufacturers and their advertising agencies. The company offers its products to retailers, home traders, and logistics firms. Auto Trader Group plc was founded in 1977 and is headquartered in Manchester, the United Kingdom.
About Amazon.com
Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and eero; and develops and produces media content. In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. Further, it provides compute, storage, database, analytics, machine learning, and other services, as well as advertising services through programs, such as sponsored ads, display, and video advertising. Additionally, the company offers Amazon Prime, a membership program. The company's products offered through its stores include merchandise and content purchased for resale and products offered by third-party sellers. It serves consumers, sellers, developers, enterprises, content creators, advertisers, and employees. Amazon.com, Inc. was incorporated in 1994 and is headquartered in Seattle, Washington.
Receive News & Ratings for Auto Trader Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Auto Trader Group and related companies with MarketBeat.com's FREE daily email newsletter.
