AMZN vs. QCOM: A Head-to-Head Stock Comparison

Company Overview

AMZN’s market capitalization of 2,267.34 billion USD is substantially larger than QCOM’s 163.87 billion USD, indicating a significant difference in their market valuations.

With betas of 1.33 for AMZN and 1.26 for QCOM, both stocks show similar sensitivity to overall market movements.

Performance Comparison

This chart compares the performance of AMZN and QCOM over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of AMZN and QCOM. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• QCOM’s Forward PEG ratio of 3.42 is very high. This signifies that its current stock price is notably elevated compared to its anticipated earnings growth rate, possibly indicating that the market has already factored in, or even exceeded, realistic future performance expectations.
• AMZN’s Price-to-Book (P/B) ratio of 7.40 is very high. This often indicates that the market values the company significantly above its net asset value, usually reflecting strong profitability, valuable intangible assets (like brand or patents), or high expectations for future growth.

Dividend Comparison

AMZN currently offers no dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while QCOM provides a 2.31% dividend yield, offering investors a component of income return.

Financial Strength Metrics Comparison

This section evaluates the financial strength of AMZN and QCOM. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• AMZN’s current ratio of 1.05 is considered low. This may signal potential challenges with its short-term liquidity, implying that its current assets might offer a limited buffer for meeting its immediate debts and could affect its capacity to smoothly manage upcoming financial duties.