AMZN vs. HD: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AMZN and HD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AMZN’s market capitalization of 2,371.81 billion USD is substantially larger than HD’s 369.79 billion USD, indicating a significant difference in their market valuations.
With betas of 1.33 for AMZN and 1.02 for HD, both stocks show similar sensitivity to overall market movements.
| Symbol | AMZN | HD |
|---|---|---|
| Company Name | Amazon.com, Inc. | The Home Depot, Inc. |
| Country | US | US |
| Sector | Consumer Cyclical | Consumer Cyclical |
| Industry | Specialty Retail | Home Improvement |
| CEO | Andrew R. Jassy | Edward P. Decker |
| Price | 223.41 USD | 371.68 USD |
| Market Cap | 2,371.81 billion USD | 369.79 billion USD |
| Beta | 1.33 | 1.02 |
| Exchange | NASDAQ | NYSE |
| IPO Date | May 15, 1997 | September 22, 1981 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AMZN and HD by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AMZN
24.26%
Specialty Retail Industry
- Max
- 70.52%
- Q3
- 29.03%
- Median
- 10.90%
- Q1
- -7.86%
- Min
- -57.43%
AMZN’s Return on Equity of 24.26% is on par with the norm for the Specialty Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.
HD
236.10%
Home Improvement Industry
- Max
- 17.64%
- Q3
- 15.63%
- Median
- 8.27%
- Q1
- 2.23%
- Min
- 0.65%
HD’s Return on Equity of 236.10% is exceptionally high, placing it well beyond the typical range for the Home Improvement industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Return on Invested Capital
AMZN
13.10%
Specialty Retail Industry
- Max
- 29.46%
- Q3
- 13.75%
- Median
- 8.05%
- Q1
- 0.80%
- Min
- -17.95%
AMZN’s Return on Invested Capital of 13.10% is in line with the norm for the Specialty Retail industry, reflecting a standard level of efficiency in generating profits from its capital base.
HD
21.80%
Home Improvement Industry
- Max
- 27.68%
- Q3
- 17.94%
- Median
- 5.81%
- Q1
- 3.74%
- Min
- 0.32%
In the upper quartile for the Home Improvement industry, HD’s Return on Invested Capital of 21.80% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
AMZN
10.14%
Specialty Retail Industry
- Max
- 19.78%
- Q3
- 8.49%
- Median
- 3.43%
- Q1
- -0.69%
- Min
- -9.88%
A Net Profit Margin of 10.14% places AMZN in the upper quartile for the Specialty Retail industry, signifying strong profitability and more effective cost management than most of its peers.
HD
8.98%
Home Improvement Industry
- Max
- 8.98%
- Q3
- 7.30%
- Median
- 4.53%
- Q1
- 3.35%
- Min
- 0.23%
A Net Profit Margin of 8.98% places HD in the upper quartile for the Home Improvement industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
AMZN
11.02%
Specialty Retail Industry
- Max
- 24.47%
- Q3
- 11.10%
- Median
- 5.85%
- Q1
- 0.66%
- Min
- -12.62%
AMZN’s Operating Profit Margin of 11.02% is around the midpoint for the Specialty Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.
HD
13.24%
Home Improvement Industry
- Max
- 13.24%
- Q3
- 10.79%
- Median
- 5.88%
- Q1
- 3.74%
- Min
- 0.41%
An Operating Profit Margin of 13.24% places HD in the upper quartile for the Home Improvement industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AMZN | HD |
|---|---|---|
| Return on Equity (TTM) | 24.26% | 236.10% |
| Return on Assets (TTM) | 10.25% | 14.76% |
| Return on Invested Capital (TTM) | 13.10% | 21.80% |
| Net Profit Margin (TTM) | 10.14% | 8.98% |
| Operating Profit Margin (TTM) | 11.02% | 13.24% |
| Gross Profit Margin (TTM) | 49.16% | 33.34% |
Financial Strength
Current Ratio
AMZN
1.05
Specialty Retail Industry
- Max
- 3.24
- Q3
- 1.99
- Median
- 1.42
- Q1
- 1.02
- Min
- 0.54
AMZN’s Current Ratio of 1.05 aligns with the median group of the Specialty Retail industry, indicating that its short-term liquidity is in line with its sector peers.
HD
1.09
Home Improvement Industry
- Max
- 1.81
- Q3
- 1.42
- Median
- 1.24
- Q1
- 1.13
- Min
- 1.01
HD’s Current Ratio of 1.09 falls into the lower quartile for the Home Improvement industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AMZN
0.44
Specialty Retail Industry
- Max
- 2.72
- Q3
- 1.42
- Median
- 0.87
- Q1
- 0.35
- Min
- 0.01
AMZN’s Debt-to-Equity Ratio of 0.44 is typical for the Specialty Retail industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
HD
2.89
Home Improvement Industry
- Max
- 1.50
- Q3
- 1.50
- Median
- 1.14
- Q1
- 0.88
- Min
- 0.71
With a Debt-to-Equity Ratio of 2.89, HD operates with exceptionally high leverage compared to the Home Improvement industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio
AMZN
31.13
Specialty Retail Industry
- Max
- 37.34
- Q3
- 17.19
- Median
- 4.28
- Q1
- 0.11
- Min
- -23.60
AMZN’s Interest Coverage Ratio of 31.13 is in the upper quartile for the Specialty Retail industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
HD
8.80
Home Improvement Industry
- Max
- 77.66
- Q3
- 36.61
- Median
- 10.22
- Q1
- 9.24
- Min
- 8.80
In the lower quartile for the Home Improvement industry, HD’s Interest Coverage Ratio of 8.80 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | AMZN | HD |
|---|---|---|
| Current Ratio (TTM) | 1.05 | 1.09 |
| Quick Ratio (TTM) | 0.84 | 0.28 |
| Debt-to-Equity Ratio (TTM) | 0.44 | 2.89 |
| Debt-to-Asset Ratio (TTM) | 0.21 | 0.23 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.50 | 0.84 |
| Interest Coverage Ratio (TTM) | 31.13 | 8.80 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AMZN and HD. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AMZN
0.00%
Specialty Retail Industry
- Max
- 5.54%
- Q3
- 1.52%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AMZN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
HD
2.45%
Home Improvement Industry
- Max
- 6.27%
- Q3
- 2.37%
- Median
- 1.03%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.45%, HD offers a more attractive income stream than most of its peers in the Home Improvement industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
AMZN
0.00%
Specialty Retail Industry
- Max
- 177.64%
- Q3
- 9.49%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AMZN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
HD
61.38%
Home Improvement Industry
- Max
- 120.85%
- Q3
- 88.43%
- Median
- 49.53%
- Q1
- 9.42%
- Min
- 0.00%
HD’s Dividend Payout Ratio of 61.38% is within the typical range for the Home Improvement industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AMZN | HD |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.45% |
| Dividend Payout Ratio (TTM) | 0.00% | 61.38% |
Valuation
Price-to-Earnings Ratio
AMZN
35.92
Specialty Retail Industry
- Max
- 81.45
- Q3
- 42.51
- Median
- 25.40
- Q1
- 12.72
- Min
- 1.88
AMZN’s P/E Ratio of 35.92 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
HD
25.19
Home Improvement Industry
- Max
- 39.38
- Q3
- 35.79
- Median
- 23.00
- Q1
- 18.95
- Min
- 15.05
HD’s P/E Ratio of 25.19 is within the middle range for the Home Improvement industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AMZN
1.72
Specialty Retail Industry
- Max
- 5.90
- Q3
- 2.79
- Median
- 1.76
- Q1
- 0.69
- Min
- 0.00
AMZN’s Forward PEG Ratio of 1.72 is within the middle range of its peers in the Specialty Retail industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
HD
2.98
Home Improvement Industry
- Max
- 2.96
- Q3
- 2.76
- Median
- 2.09
- Q1
- 1.72
- Min
- 0.17
HD’s Forward PEG Ratio of 2.98 is exceptionally high for the Home Improvement industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
Price-to-Sales Ratio
AMZN
3.65
Specialty Retail Industry
- Max
- 5.26
- Q3
- 2.60
- Median
- 1.29
- Q1
- 0.41
- Min
- 0.06
AMZN’s P/S Ratio of 3.65 is in the upper echelon for the Specialty Retail industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
HD
2.27
Home Improvement Industry
- Max
- 2.25
- Q3
- 1.72
- Median
- 1.23
- Q1
- 0.91
- Min
- 0.46
With a P/S Ratio of 2.27, HD trades at a valuation that eclipses even the highest in the Home Improvement industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio
AMZN
7.74
Specialty Retail Industry
- Max
- 12.73
- Q3
- 6.96
- Median
- 3.28
- Q1
- 1.42
- Min
- 0.24
AMZN’s P/B Ratio of 7.74 is in the upper tier for the Specialty Retail industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
HD
46.35
Home Improvement Industry
- Max
- 3.63
- Q3
- 3.63
- Median
- 3.51
- Q1
- 2.45
- Min
- 1.05
At 46.35, HD’s P/B Ratio is at an extreme premium to the Home Improvement industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | AMZN | HD |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 35.92 | 25.19 |
| Forward PEG Ratio (TTM) | 1.72 | 2.98 |
| Price-to-Sales Ratio (P/S, TTM) | 3.65 | 2.27 |
| Price-to-Book Ratio (P/B, TTM) | 7.74 | 46.35 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 113.97 | 24.34 |
| EV-to-EBITDA (TTM) | 18.07 | 15.30 |
| EV-to-Sales (TTM) | 3.75 | 2.40 |