Walmart vs Amazon stock - which one to choose?!

I’m sure some of you had this thought of which stock from two should you choose. For this example, I chose Walmart and Amazon, two leaders in the retail space. Let’s start with amazon.

Amazon is a company with many revenue streams like: Amazon Prime, Aws, Kindle and their grocery stores. However, they have been diluting their shareholders, by issuing more stocks. Their profit margin is 6.38%. Their financial situation, in my opinion could have been better. They shouldn’t have taken They shouldn’t have taken on so much debt. This is their net debt to cash: -49.61B. But I think that Amazon wants to focus on long-term growth and to under cut their competition by offering lower prices for some of their products. I think you’ve heard of them cutting down grocery store prices by 30%, that means that they just want Walmart to go bankrupt, so they would earn more money by raising the prices again when people will only be shopping at Amazon. Amazon has a subscription, and Walmart has one as well. Amazon doesn’t pay a dividend, although I think that they will eventually pay dividends, I think this year, as major tech companies like Google and Meta started paying dividends recently.

Now Walmart. The largest retailer in the world. In a recent earnings report they are talking about automating 65% of stores by 2026. That isn’t that far away! Their profit margin will definitely go up because of this. Also, they have recently hiked their dividend by about 9%, instead of about 1%, as they did previously. Their financial situation is worse than Amazon’s though, as they have -51.45B net cash to debt, and a profit margin of just 2.39%, which is lower than Amazon. They are projected to grow earnings by 6.5%, compared to Amazon’s 21.4%.

In conclusion I came to the answer that Amazon is a better povk for me as I want to have more growth than stability.

here are Walmarts and Amazons valuations made by simplywall.st:

Do your own research. This isn’t financial advice.