Over the past three months, one of the top growth leaders in the S&P 500 index was the retail industry (Broadline Retail) +29.1%.
Some of the largest (by market capitalization) companies in this industry: Amazon ($2.38T), the world’s leading online retailer, and eBay ($30.4B), an online platform with 20 million sellers from 190 countries.
According to the latest quarterly reporting data, we analyzed the profitability, strength, and efficiency criteria for each company using the methodology of Stanford University professor Joseph Piotroski.
As you can see, in terms of fundamental data, Amazon outperforms eBay in terms of profitability and efficiency.
Over the past 3 months, Amazon shares have risen by +29.4%, while eBay has increased by +7.0% (the S&P 500 index has risen by +11.2%). Amazon has not only outperformed its closest competitor, but also demonstrated better results compared to the index.
So, the winner in this issue is Amazon. And although eBay’s business is superior in terms of funding, Amazon’s shares show better returns, and the business outperforms its competitor in terms of change in return on assets, accumulation, liquidity, and operating margin.
* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
