Critical Survey: Amazon.com (NASDAQ:AMZN) versus Global-e Online (NASDAQ:GLBE)

Global-e Online (NASDAQ:GLBE) and Amazon.com (NASDAQ:AMZN) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of current recommendations for Global-e Online and Amazon.com, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global-e Online	0	3	13	0	2.81
Amazon.com	0	3	56	1	2.97

Global-e Online presently has a consensus target price of $48.08, indicating a potential upside of 16.14%. Amazon.com has a consensus target price of $320.86, indicating a potential upside of 33.50%. Given Amazon.com’s stronger consensus rating and higher probable upside, analysts plainly believe Amazon.com is more favorable than Global-e Online.

Earnings & Valuation

This table compares Global-e Online and Amazon.com”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global-e Online	$962.20 million	7.30	$68.27 million	$0.86	48.14
Amazon.com	$716.92 billion	3.62	$77.67 billion	$12.37	19.43

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

Volatility & Risk

Global-e Online has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Amazon.com has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500.

Institutional and Insider Ownership

94.6% of Global-e Online shares are held by institutional investors. Comparatively, 72.2% of Amazon.com shares are held by institutional investors. 11.6% of Global-e Online shares are held by company insiders. Comparatively, 8.9% of Amazon.com shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Global-e Online and Amazon.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global-e Online	13.87%	16.70%	11.39%
Amazon.com	16.90%	15.72%	7.79%

Summary

Amazon.com beats Global-e Online on 9 of the 15 factors compared between the two stocks.

About Global-e Online

Global-E Online Ltd., together with its subsidiaries, provides a platform to enable and accelerate direct-to-consumer cross-border e-commerce in Israel, the United Kingdom, the United States, and internationally. Its platform enables international shoppers to buy online and merchants to sell from, and to, worldwide. The company was incorporated in 2013 and is headquartered in Petah Tikva, Israel.

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.