Key points to remember:
- Amazon has nearly 40% of the online retail market and Walmart has over 10,500 physical stores.
- Some believe that Amazon is currently undervalued, which might make it the right buy. But others think a prolonged recession could be just what Walmart needs to compete with Amazon in a big way.
- On the surface, Walmart has bigger revenue numbers. However, Amazon grows revenue faster based on the year-over-year aspect.
Although both companies serve the needs of millions of buyers each year, there are many differences that set them apart in the eyes of the stock market. Let’s take a closer look at the stocks of Amazon and Walmart to better understand how these two mega-companies stack up in 2022.
Amazon vs. Walmart: How Do These Stocks Compare?
It’s no secret that Amazon and Walmart are major players in the retail industry.
As a shopper, you’ve probably made a purchase recently at one or both of these stores. That’s no surprise considering that Amazon has nearly 40% of the online retail market and Walmart has more than 10,500 company-flagged brick-and-mortar stores.
It is clear that these two companies are major players in the retail sector. But when it comes to the stock market, which company comes out on top?
Below is an in-depth analysis of the numbers driving each of these companies.
Walmart vs. Amazon: Stock Price Snapshot
To begin, let’s look at current stock prices.
As of August 31, 2022, Walmart’s stock price was $132.34. The 52-week high was $160.77, while the low was $117.27. As with most stock markets, WMT had a relatively bumpy year. The WMT is currently down 8.43% year-to-date.
On the other side of the table, Amazon’s stock price sits at $127.69. The year saw even more volatility in Amazon stock prices, with a 52-week high of $188.11 and a low of $101.26. Year-to-date, AMZN is down 25.13%.
With this information, it is easy to see that AMZN exhibits more volatility than WMT. But these numbers only scratch the surface. In the sections below, you will find more details that give an overview of these stock prices.
Walmart vs. Amazon: Revenue
In the quarter ending June 30, 2022, Amazon recorded revenue of $121.234 billion. This undeniably impressive number represents a year-over-year increase of 7.21%. But that pales in comparison to Amazon’s revenue for the previous 12 months, which was $485.902 billion counting from June 2022. Revenue for the year shows a 9.61% increase in one year to the next.
Walmart posted even more impressive numbers. Revenue for the quarter ending July 31, 2022 was $152.859 billion, representing an 8.37% year-over-year increase. When the previous 12 months are factored in, Walmart’s revenue was $587.823 billion. While impressive, these earnings represent only a 3.83% year-over-year revenue increase.
On the surface, Walmart has bigger revenue numbers. However, Amazon grows revenue faster based on the year-over-year aspect. If the pace continues, Amazon could eventually grow its revenue beyond that of Walmart.
Walmart vs. Amazon: net income
Revenue is important. But ultimately, the net income of a business is where the money is made.
Walmart posted net income of $5.149 billion in the quarter ending July 31, 2022, indicating a 20.42% year-over-year increase. The company’s annual net profit for 2022 was $13.673 billion. This represents a slight increase of 1.21% year over year.
On the other side of the coin, Amazon posted negative net income for the quarter ending June 30, 2022. The company lost $2.028 billion, indicating a 126.07% year-over-year decline. ‘other.
However, the picture is rosier when looking at the last 12 months. During this period, Amazon’s net income was $11.607 billion. While that’s still down 60.57% year over year, the company is still making a profit.
Walmart vs. Amazon: Assets and Liabilities
Owned assets and owed liabilities can definitely propel a business forward or hold it back. Thus, before investing in any particular stock, it is prudent to check the balance sheet for outstanding liabilities and valid assets.
As for Amazon, the company claims total assets of $419.728 billion in the quarter ending June 30, 2022. This represents a 16.49% year-over-year increase. Additionally, the company holds $288.326 billion in liabilities. The company’s liabilities have also increased since last year, by 17.44%.
Walmart holds fewer assets than Amazon, totaling $246.142 billion in the quarter ending July 31, 2022. The company saw a 4.04% increase in assets year over year. other. Like Amazon, Walmart also holds significant liabilities. In the quarter ending July 31, 2022, the company had liabilities of $160.542 billion, representing a 5.63% year-over-year increase.
Amazon owns more assets than Walmart. But he also holds more liabilities.
Walmart vs. Amazon: Equity
As a shareholder, it is interesting to see how current shareholders are treated. Specifically, a close look at equity trends can help you get a better idea of what the company could do for your portfolio.
Walmart shareholders had $85.6 trillion in equity for the quarter ending July 31, 2022. This represents a 1.19% year-over-year increase. Amazon shareholders saw a larger increase in equity for the quarter ending June 30, 2022. They had $131.402 billion in equity, representing a 14.46% year-over-year increase. the other.
Of course, as a shareholder, you want to see your equity increase over time. At least in the past year, Amazon has given its equity a more substantial boost.
Walmart vs. Amazon: Dividends
When building an investment portfolio, you may or may not focus on dividends. A dividend is a payment made to the owners of shares. Many investors seek dividends when constructing an investment portfolio designed to provide passive income.
Amazon does not pay dividends. But Walmart does. As of August 30, 2022, the dividend is $2.24, which equates to a dividend yield of 1.69%. Walmart has been paying dividends since 1989.
Walmart vs. Amazon: Perspectives
Both Amazon and Walmart have relatively bright futures, making it difficult to pinpoint a clear winner. Walmart remains strong in the current tumultuous economic climate. But Amazon still clearly dominates the e-commerce market.
Some believe that Amazon is currently undervalued, which might make it the right buy. But others think a prolonged recession might be just what Walmart needs to compete with Amazon in a big way. It should be noted that Amazon Web Services (AWS) providing cloud computing services has been a huge profit generator for Amazon.
Additionally, Walmart’s recent hiring of a former PayPal
Ultimately, you will have to decide for yourself what is the right decision for your stock portfolio.
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