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

Learn more about the purpose of this analysis

More from Trefis

Apple and Amazon.com Insights

Invest in Market-Beating Trefis Portfolios