Apple vs. Amazon.com: With Return Forecast Of 24%, Amazon.com Is A Better Bet
Last Updated: 12/3/2024
We Forecast Higher Stock Return For Amazon.com vs. Its Competitor Apple
Apple is trading at a more expensive P/S valuation vs. Amazon.com but it makes sense to pay less for Amazon.com for a higher return
AAPL and AMZN are industry competitors
3-Year Return Depends On [1] Revenue Growth [2] P/S
[1] How Much Can Revenue Grow In Next 3 Years
We forecast annual revenue growth of 2.8% for AAPL and 8.7% for AMZN
[2] Which P/S Scenarios Make Sense
We forecast P/S of 8.7 for AAPL and 3.4 for AMZN based on below plausible scenarios
Are Current P/S Ratios Justified
A higher P/S is justified by higher margin, higher revenue growth, better margin expansion, and lower risk
P/S Ratio
Revenue Growth & Operating Margin
Financial & Market Risk
Note On P/S Justification
Past Market Return Comparison vs. Benchmarks
Since 2019, Apple and Amazon.com returned 528% and 177% respectively vs. 141% for S&P 500 and 560% for Trefis Reinforced Value Portfolio
FAQ
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