Comprehensive Stock Comparison
Compare Amazon.com, Inc. (AMZN) vs Alphabet Inc. (GOOGL) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | GOOGL | 15.1% revenue growth vs AMZN's 12.4% |
| Value | GOOGL | PEG 0.91 vs 0.97 |
| Quality / Margins | GOOGL | 32.8% net margin vs AMZN's 10.8% |
| Stability / Safety | GOOGL | Beta 0.99 vs AMZN's 1.31, lower leverage |
| Dividends | GOOGL | 0.3% yield; 2-year raise streak; AMZN pays no meaningful dividend |
| Momentum (1Y) | GOOGL | +83.6% vs AMZN's -1.1% |
| Efficiency (ROA) | GOOGL | 22.2% ROA vs AMZN's 9.5%, ROIC 24.7% vs 14.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Amazon is a global e-commerce and technology giant that operates online marketplaces, physical stores, and cloud computing services. It generates revenue primarily from online retail sales (~80% of total), Amazon Web Services cloud computing (~15%), and advertising/subscription services like Prime. Its key competitive advantage is an immense logistics network and data infrastructure moat—including AWS's dominant cloud position—that creates massive scale economies and ecosystem lock-in.
Alphabet is a technology conglomerate best known as the parent company of Google, which dominates the digital advertising market through search, YouTube, and display ads. It generates over 80% of its revenue from advertising, with the remainder coming from Google Cloud services, hardware sales, and subscription products like YouTube Premium. Its primary moat is the massive network effect of its search ecosystem — billions of users, advertisers, and content creators locked into its platforms through data, scale, and habit.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
GOOGL leads in 5 of 6 categories — strongest in Financial Metrics and Valuation Metrics.
Financial Metrics (TTM)
AMZN is the larger business by revenue, generating $716.9B annually — 1.8x GOOGL's $402.9B. GOOGL is the more profitable business, keeping 32.8% of every revenue dollar as net income compared to AMZN's 10.8%. On growth, GOOGL holds the edge at +18.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | AMZNAmazon.com, Inc. | GOOGLAlphabet Inc. |
|---|---|---|
| RevenueTrailing 12 months | $716.9B | $402.9B |
| EBITDAEarnings before interest/tax | $126.3B | $150.2B |
| Net IncomeAfter-tax profit | $77.7B | $132.2B |
| Free Cash FlowCash after capex | $7.7B | $73.3B |
| Gross MarginGross profit ÷ Revenue | +50.3% | +59.7% |
| Operating MarginEBIT ÷ Revenue | +11.2% | +32.0% |
| Net MarginNet income ÷ Revenue | +10.8% | +32.8% |
| FCF MarginFCF ÷ Revenue | +1.1% | +18.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +13.6% | +18.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +4.8% | +31.2% |
Valuation Metrics
At 28.8x trailing earnings, GOOGL trades at a 2% valuation discount to AMZN's 29.3x P/E. Adjusting for growth (PEG ratio), GOOGL offers better value at 0.97x vs AMZN's 1.05x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | AMZNAmazon.com, Inc. | GOOGLAlphabet Inc. |
|---|---|---|
| Market CapShares × price | $2.25T | $1.69T |
| Enterprise ValueMkt cap + debt − cash | $2.32T | $1.73T |
| Trailing P/EPrice ÷ TTM EPS | 29.29x | 28.84x |
| Forward P/EPrice ÷ next-FY EPS est. | 27.03x | 27.26x |
| PEG RatioP/E ÷ EPS growth rate | 1.05x | 0.97x |
| EV / EBITDAEnterprise value multiple | 18.38x | 11.54x |
| Price / SalesMarket cap ÷ Revenue | 3.14x | 4.20x |
| Price / BookPrice ÷ Book value/share | 5.55x | 9.18x |
| Price / FCFMarket cap ÷ FCF | 292.96x | 23.10x |
Profitability & Efficiency
GOOGL delivers a 31.8% return on equity — every $100 of shareholder capital generates $32 in annual profit, vs $19 for AMZN. GOOGL carries lower financial leverage with a 0.17x debt-to-equity ratio, signaling a more conservative balance sheet compared to AMZN's 0.37x. On the Piotroski fundamental quality scale (0–9), GOOGL scores 7/9 vs AMZN's 6/9, reflecting strong financial health.
| Metric | AMZNAmazon.com, Inc. | GOOGLAlphabet Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +18.9% | +31.8% |
| ROA (TTM)Return on assets | +9.5% | +22.2% |
| ROICReturn on invested capital | +14.7% | +24.7% |
| ROCEReturn on capital employed | +15.3% | +30.3% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 0.37x | 0.17x |
| Net DebtTotal debt minus cash | $66.2B | $41.3B |
| Cash & Equiv.Liquid assets | $86.8B | $30.7B |
| Total DebtShort + long-term debt | $153.0B | $72.0B |
| Interest CoverageEBIT ÷ Interest expense | 42.78x | 903.26x |
Total Returns (with DRIP)
A $10,000 investment in GOOGL five years ago would be worth $30,266 today (with dividends reinvested), compared to $13,349 for AMZN. Over the past 12 months, GOOGL leads with a +83.6% total return vs AMZN's -1.1%. The 3-year compound annual growth rate (CAGR) favors GOOGL at 51.5% vs AMZN's 30.6% — a key indicator of consistent wealth creation.
| Metric | AMZNAmazon.com, Inc. | GOOGLAlphabet Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -7.3% | -1.1% |
| 1-Year ReturnPast 12 months | -1.1% | +83.6% |
| 3-Year ReturnCumulative with dividends | +122.9% | +247.8% |
| 5-Year ReturnCumulative with dividends | +33.5% | +202.7% |
| 10-Year ReturnCumulative with dividends | +660.0% | +773.4% |
| CAGR (3Y)Annualised 3-year return | +30.6% | +51.5% |
Risk & Volatility
GOOGL is the less volatile stock with a 0.99 beta — it tends to amplify market swings less than AMZN's 1.31 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. GOOGL currently trades 89.3% from its 52-week high vs AMZN's 81.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | AMZNAmazon.com, Inc. | GOOGLAlphabet Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.31x | 0.99x |
| 52-Week HighHighest price in past year | $258.60 | $349.00 |
| 52-Week LowLowest price in past year | $161.38 | $140.53 |
| % of 52W HighCurrent price vs 52-week peak | +81.2% | +89.3% |
| RSI (14)Momentum oscillator 0–100 | 39.9 | 40.8 |
| Avg Volume (50D)Average daily shares traded | 40.7M | 28.2M |
Analyst Outlook
Wall Street rates AMZN as "Buy" and GOOGL as "Buy". Consensus price targets imply 35.2% upside for AMZN (target: $284) vs 14.6% for GOOGL (target: $357). GOOGL is the only dividend payer here at 0.26% yield — a key consideration for income-focused portfolios.
| Metric | AMZNAmazon.com, Inc. | GOOGLAlphabet Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $283.97 | $357.19 |
| # AnalystsCovering analysts | 94 | 81 |
| Dividend YieldAnnual dividend ÷ price | — | +0.3% |
| Dividend StreakConsecutive years of raises | — | 2 |
| Dividend / ShareAnnual DPS | — | $0.82 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +2.7% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Amazon.com, Inc. (AMZN) | 100 | 248.68 | +148.7% |
| Alphabet Inc. (GOOGL) | 100 | 495.8 | +395.8% |
Alphabet Inc. (GOOGL) returned +203% over 5 years vs Amazon.com, Inc. (AMZN)'s +33%. A $10,000 investment in GOOGL 5 years ago would be worth $30,266 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Amazon.com, Inc. (AMZN) | $136.0B | $716.9B | +427.2% |
| Alphabet Inc. (GOOGL) | $90.3B | $403.0B | +346.4% |
Amazon.com, Inc.'s revenue grew from $136.0B (2016) to $716.9B (2025) — a 20.3% CAGR. Alphabet Inc.'s revenue grew from $90.3B (2016) to $403.0B (2025) — a 18.1% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Amazon.com, Inc. (AMZN) | 1.7% | 10.8% | +521.4% |
| Alphabet Inc. (GOOGL) | 21.6% | 32.8% | +52.0% |
Amazon.com, Inc.'s net margin went from 2% (2016) to 11% (2025). Alphabet Inc.'s net margin went from 22% (2016) to 33% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Amazon.com, Inc. (AMZN) | 188.6 | 32.2 | -82.9% |
| Alphabet Inc. (GOOGL) | 58.5 | 29 | -50.4% |
Amazon.com, Inc. has traded in a 32x–189x P/E range over 8 years; current trailing P/E is ~29x. Alphabet Inc. has traded in a 19x–59x P/E range over 9 years; current trailing P/E is ~29x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Amazon.com, Inc. (AMZN) | 0.25 | 7.17 | +2768.0% |
| Alphabet Inc. (GOOGL) | 1.39 | 10.81 | +677.7% |
Amazon.com, Inc.'s EPS grew from $0.25 (2016) to $7.17 (2025) — a 45% CAGR. Alphabet Inc.'s EPS grew from $1.39 (2016) to $10.81 (2025) — a 26% CAGR.
Chart 6Free Cash Flow — 5 Years
Amazon.com, Inc. generated $8B FCF in 2025 (+152% vs 2021). Alphabet Inc. generated $73B FCF in 2025 (+9% vs 2021).
AMZN vs GOOGL: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is AMZN or GOOGL a better buy right now?
Alphabet Inc. (GOOGL) offers the better valuation at 28.8x trailing P/E (27.3x forward), making it the more compelling value choice. Analysts rate Amazon.com, Inc. (AMZN) a "Buy" — based on 94 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — AMZN or GOOGL?
On trailing P/E, Alphabet Inc. (GOOGL) is the cheapest at 28.8x versus Amazon.com, Inc. at 29.3x. On forward P/E, Amazon.com, Inc. is actually cheaper at 27.0x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Alphabet Inc. wins at 0.91x versus Amazon.com, Inc.'s 0.97x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — AMZN or GOOGL?
Over the past 5 years, Alphabet Inc. (GOOGL) delivered a total return of +202.7%, compared to +33.5% for Amazon.com, Inc. (AMZN). A $10,000 investment in GOOGL five years ago would be worth approximately $30K today (assuming dividends reinvested). Over 10 years, the gap is even starker: GOOGL returned +773.4% versus AMZN's +660.0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — AMZN or GOOGL?
By beta (market sensitivity over 5 years), Alphabet Inc. (GOOGL) is the lower-risk stock at 0.99β versus Amazon.com, Inc.'s 1.31β — meaning AMZN is approximately 33% more volatile than GOOGL relative to the S&P 500. On balance sheet safety, Alphabet Inc. (GOOGL) carries a lower debt/equity ratio of 17% versus 37% for Amazon.com, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — AMZN or GOOGL?
Alphabet Inc. (GOOGL) is the more profitable company, earning 32.8% net margin versus 10.8% for Amazon.com, Inc. — meaning it keeps 32.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GOOGL leads at 32.1% versus 11.2% for AMZN. At the gross margin level — before operating expenses — GOOGL leads at 59.7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is AMZN or GOOGL more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Alphabet Inc. (GOOGL) is the more undervalued stock at a PEG of 0.91x versus Amazon.com, Inc.'s 0.97x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Amazon.com, Inc. (AMZN) trades at 27.0x forward P/E versus 27.3x for Alphabet Inc. — 0.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AMZN: 35.2% to $283.97.
07Which pays a better dividend — AMZN or GOOGL?
In this comparison, GOOGL (0.3% yield) pays a dividend. AMZN does not pay a meaningful dividend and should not be held primarily for income.
08Is AMZN or GOOGL better for a retirement portfolio?
For long-horizon retirement investors, Alphabet Inc. (GOOGL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.99), +773.4% 10Y return). Both have compounded well over 10 years (GOOGL: +773.4%, AMZN: +660.0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between AMZN and GOOGL?
These companies operate in different sectors (AMZN (Consumer Cyclical) and GOOGL (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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