Amazon.com (NASDAQ:AMZN) versus LY (OTCMKTS:YAHOY) Head to Head Analysis

LY (OTCMKTS:YAHOY) and Amazon.com (NASDAQ:AMZN) are both large-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Profitability

This table compares LY and Amazon.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LY	10.35%	6.38%	2.24%
Amazon.com	11.06%	23.62%	11.42%

Risk and Volatility

LY has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Amazon.com has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.

Insider and Institutional Ownership

72.2% of Amazon.com shares are held by institutional investors. 9.7% of Amazon.com shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares LY and Amazon.com”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LY	$12.59 billion	1.48	$1.01 billion	$0.38	14.24
Amazon.com	$637.96 billion	3.81	$59.25 billion	$7.08	32.11

Amazon.com has higher revenue and earnings than LY. LY is trading at a lower price-to-earnings ratio than Amazon.com, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for LY and Amazon.com, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LY	0	2	0	0	2.00
Amazon.com	0	3	56	2	2.98

Amazon.com has a consensus price target of $295.50, suggesting a potential upside of 29.98%. Given Amazon.com’s stronger consensus rating and higher possible upside, analysts plainly believe Amazon.com is more favorable than LY.

Summary

Amazon.com beats LY on 15 of the 15 factors compared between the two stocks.

About LY

LY Corporation engages in the online advertising and e-commerce businesses in Japan. The company provides LINE, a communication app; and Yahoo! JAPAN, an internet service that offers search, news, weather, shopping, auction, and other services. It also offers reuse, membership, and payment-related services. The company was formerly known as Z Holdings Corporation and changed its name to LY Corporation in October 2023. LY Corporation was founded in 1996 and is headquartered in Chiyoda, Japan. LY Corporation operates as a subsidiary of A Holdings Corporation.

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.