Better Bet Than Amazon.com Stock: Pay Less To Get More From Industry Peers
As Amazon.com navigates a competitive landscape alongside peers like NVIDIA, Microsoft, and Apple, its valuation presents a striking contrast to their robust revenue and operating income growth rates. With a P/EBIT ratio significantly higher than its counterparts, the question arises: could investors find better opportunities among these peers? This analysis delves into key metrics that illustrate the evolving dynamics of Amazon’s performance, suggesting a potential reconsideration of investment strategies in the broader retail space.
Key Metrics Compared
| Metric | AMZN | NVDA | MSFT | AAPL |
|---|---|---|---|---|
| P/EBIT* | 29.8x | 43.5x | 30.6x | 24.7x |
| LTM OpInc Growth | 51.3% | 80.5% | 15.5% | 7.7% |
| 3Y Avg OpInc Growth | 91.3% | 327.4% | 14.6% | 2.4% |
| LTM Revenue Growth | 10.1% | 86.2% | 14.1% | 4.9% |
| 3Y Avg Revenue Growth | 10.8% | 94.0% | 12.0% | 1.3% |
Uncover more peer insights on Amazon.com peer comparison and Amazon.com counter-intuitive comparison
OpInc = Operating Income, P/EBIT = Price To Operating Income Ratio
Is The Mismatch In Stock Price Temporary
One way to check if Amazon.com stock is expensive now versus the other tickers would be to see how these metrics compared across companies exactly a year ago. Specifically, if there has been a marked reversal in the trend for Amazon.com in the last 12 months, then there is a chance that the current mismatch is likely to reverse. On the other hand, a persistent underperformance in revenue and operating income growth for Amazon.com would reinforce the conclusion that the stock is expensive compared to its peers, but may not revert soon
Key Metrics Compared 1 Yr Prior
| Metric | AMZN | NVDA | MSFT | AAPL |
|---|---|---|---|---|
| P/EBIT* | 43.9x | 67.7x | 32.0x | 29.4x |
| LTM OpInc Growth | 86.1% | 147.0% | 17.1% | 5.9% |
| 3Y Avg OpInc Growth | 78.7% | 197.9% | 14.6% | 2.5% |
| LTM Revenue Growth | 11.0% | 114.2% | 15.0% | 2.6% |
| 3Y Avg Revenue Growth | 10.7% | 80.1% | 12.3% | 1.5% |
OpInc = Operating Income
Additional Metrics To Consider
| Metric | AMZN | NVDA | MSFT | AAPL |
|---|---|---|---|---|
| P/S | 3.6x | 26.3x | 13.7x | 7.9x |
| Market Cap (Current) | $ 2.33 Tril | $ 3.91 Tril | $ 3.69 Tril | $ 3.15 Tril |
| LTM Revenue | $ 650.31 Bil | $ 148.51 Bil | $ 270.01 Bil | $ 400.37 Bil |
| LTM Opinc | $ 71.69 Bil | $ 86.18 Bil | $ 122.13 Bil | $ 127.36 Bil |
| LTM Op Margin | 11.0% | 58.0% | 45.2% | 31.8% |
OpInc = Operating Income
Overview of Returns:
Individual Stock Returns YTD:
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| AMZN Return | 76% | 2% | -50% | 81% | 44% | 2% | 138% | ||
| NVDA Return | 122% | 125% | -50% | 239% | 171% | 18% | 2602% | <=== | |
| MSFT Return | 43% | 52% | -28% | 58% | 13% | 19% | 231% | ||
| AAPL Return | 82% | 35% | -26% | 49% | 31% | -16% | 199% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 6% | 94% | ||
| Monthly Win Rates [3] | |||||||||
| AMZN Win Rate | 67% | 50% | 25% | 83% | 75% | 50% | 58% | ||
| NVDA Win Rate | 75% | 58% | 42% | 75% | 75% | 67% | 65% | <=== | |
| MSFT Win Rate | 67% | 75% | 25% | 67% | 58% | 50% | 57% | ||
| AAPL Win Rate | 67% | 67% | 25% | 75% | 58% | 33% | 54% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 50% | 61% | ||
| Max Drawdowns [4] | |||||||||
| AMZN Max Drawdown | -9% | -9% | -51% | -1% | -5% | -24% | -17% | ||
| NVDA Max Drawdown | -16% | -11% | -62% | -2% | -4% | -30% | -21% | ||
| MSFT Max Drawdown | -14% | -5% | -36% | -7% | -2% | -16% | -13% | ||
| AAPL Max Drawdown | -23% | -12% | -29% | -4% | -14% | -31% | -19% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year till date (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
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