Amazon.com (NASDAQ:AMZN – Get Free Report) and iPower (NASDAQ:IPW – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.
Volatility and Risk
Amazon.com has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, iPower has a beta of 3.24, indicating that its share price is 224% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Amazon.com and iPower, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amazon.com | 0 | 3 | 56 | 1 | 2.97 |
| iPower | 1 | 0 | 0 | 0 | 1.00 |
Amazon.com presently has a consensus price target of $320.86, indicating a potential upside of 26.67%. Given Amazon.com’s stronger consensus rating and higher possible upside, research analysts plainly believe Amazon.com is more favorable than iPower.
Profitability
This table compares Amazon.com and iPower’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Amazon.com | 16.90% | 15.72% | 7.79% |
| iPower | -23.43% | -47.96% | -27.32% |
Valuation & Earnings
This table compares Amazon.com and iPower”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amazon.com | $716.92 billion | 3.81 | $77.67 billion | $12.37 | 20.48 |
| iPower | $19.96 million | 0.01 | -$11.62 million | ($5,768.10) | -0.00 |
Amazon.com has higher revenue and earnings than iPower. iPower is trading at a lower price-to-earnings ratio than Amazon.com, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
72.2% of Amazon.com shares are held by institutional investors. Comparatively, 2.7% of iPower shares are held by institutional investors. 8.9% of Amazon.com shares are held by insiders. Comparatively, 0.7% of iPower shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Amazon.com beats iPower on 14 of the 15 factors compared between the two stocks.
About Amazon.com
Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and eero; and develops and produces media content. In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. Further, it provides compute, storage, database, analytics, machine learning, and other services, as well as advertising services through programs, such as sponsored ads, display, and video advertising. Additionally, the company offers Amazon Prime, a membership program. The company's products offered through its stores include merchandise and content purchased for resale and products offered by third-party sellers. It serves consumers, sellers, developers, enterprises, content creators, advertisers, and employees. Amazon.com, Inc. was incorporated in 1994 and is headquartered in Seattle, Washington.
About iPower
iPower Inc. operates as an online retailer and supplier of consumer home, garden, and pet products for commercial businesses and individuals in the United States. The company offers grow light systems; advanced heating, ventilation, and air conditioning systems; water pumps, heaters, chillers, and filters; nutrient and fertilizer delivery systems; and various growing media products. It also provides general gardening products, including environmental sensors and controls; and home products, which comprise commercial fans, floor and wall fans, storage and shelving units, and chairs. The company sells its products under the iPower and Simple Deluxe brand names through zenhydro.com, simpledeluxe.com, and various third-party online platforms. The company was formerly known as BZRTH Inc. and changed its name to iPower Inc. in September 2020. iPower Inc. was incorporated in 2018 and is based in Rancho Cucamonga, California.
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