Amazon.com (AMZN) vs. Liberty Interactive Corporation (QVCA) Critical Review
Amazon.com (NASDAQ: AMZN) and Liberty Interactive Corporation (NASDAQ:QVCA) are both mid-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Earnings & Valuation
This table compares Amazon.com and Liberty Interactive Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Amazon.com||$150.12 billion||3.10||$12.30 billion||$3.94||245.58|
|Liberty Interactive Corporation||$10.10 billion||0.99||$1.78 billion||$0.97||22.75|
Amazon.com has higher revenue and earnings than Liberty Interactive Corporation. Liberty Interactive Corporation is trading at a lower price-to-earnings ratio than Amazon.com, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Amazon.com has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Liberty Interactive Corporation has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.
Insider & Institutional Ownership
60.8% of Amazon.com shares are held by institutional investors. Comparatively, 88.9% of Liberty Interactive Corporation shares are held by institutional investors. 17.7% of Amazon.com shares are held by insiders. Comparatively, 10.7% of Liberty Interactive Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a summary of current ratings and price targets for Amazon.com and Liberty Interactive Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Liberty Interactive Corporation||0||1||7||0||2.88|
Amazon.com currently has a consensus target price of $1,078.66, suggesting a potential upside of 11.48%. Liberty Interactive Corporation has a consensus target price of $29.57, suggesting a potential upside of 33.99%. Given Liberty Interactive Corporation’s higher possible upside, analysts clearly believe Liberty Interactive Corporation is more favorable than Amazon.com.
This table compares Amazon.com and Liberty Interactive Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Liberty Interactive Corporation||4.47%||10.65%||3.71%|
Amazon.com beats Liberty Interactive Corporation on 10 of the 15 factors compared between the two stocks.
Amazon.com, Inc. offers a range of products and services through its Websites. The Company operates through three segments: North America, International and Amazon Web Services (AWS). The Company’s products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It also manufactures and sells electronic devices. The Company, through its subsidiary, Whole Foods Market, Inc., offers healthy and organic food and staples across its stores. The Company also offers a range of products like whole trade bananas, organic avocados, organic large brown eggs, organic responsibly-farmed salmon and tilapia, organic baby kale and baby lettuce, animal-welfare-rated 85% lean ground beef, creamy and crunchy almond butter, organic gala and fuji apples, organic rotisserie chicken.
About Liberty Interactive Corporation
Liberty Interactive Corporation owns interests in subsidiaries and other companies, which are primarily engaged in the video and online commerce industries. Through its subsidiaries and affiliates, the Company operates in North America, Europe and Asia. Its principal businesses and assets include its subsidiaries QVC, Inc. (QVC), zulily, llc (zulily) and and Evite, Inc. (Evite). The Company’s segments include QVC, zulily, and Corporate and other. Evite is an online invitation and social event planning service on the Web. As of December 31, 2016, QVC marketed and sold a range of consumer products primarily through live merchandise-focused televised shopping programs distributed to approximately 362 million households each day and through its Websites, including QVC.com, and other interactive media, such as mobile applications. Zulily’s merchandise includes women’s, children’s and men’s apparel, children’s merchandise and other products, such as kitchen accessories and home decor.
Receive News & Stock Ratings for Amazon.com Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Amazon.com Inc. and related stocks with our FREE daily email newsletter.