ARCO vs AMZN

For growth investors, Amazon.

com, Inc. (AMZN) is the stronger pick with 12. 4% revenue growth year-over-year, versus 4. 7% for Arcos Dorados Holdings Inc. (ARCO). Arcos Dorados Holdings Inc. (ARCO) offers the better valuation at 9. 0x trailing P/E (13. 1x forward), making it the more compelling value choice. Analysts rate Arcos Dorados Holdings Inc. (ARCO) a "Buy" — based on 12 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.

On trailing P/E, Arcos Dorados Holdings Inc.

(ARCO) is the cheapest at 9. 0x versus Amazon. com, Inc. at 38. 3x. On forward P/E, Arcos Dorados Holdings Inc. is actually cheaper at 13. 1x.

Over the past 5 years, Arcos Dorados Holdings Inc.

(ARCO) delivered a total return of +66. 9%, compared to +66. 3% for Amazon. com, Inc. (AMZN). Over 10 years, the gap is even starker: AMZN returned +715. 9% versus ARCO's +124. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Arcos Dorados Holdings Inc.

(ARCO) is the lower-risk stock at 0. 98β versus Amazon. com, Inc. 's 1. 51β — meaning AMZN is approximately 55% more volatile than ARCO relative to the S&P 500. On balance sheet safety, Amazon. com, Inc. (AMZN) carries a lower debt/equity ratio of 37% versus 3% for Arcos Dorados Holdings Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Amazon.

com, Inc. (AMZN) is pulling ahead at 12. 4% versus 4. 7% for Arcos Dorados Holdings Inc. (ARCO). On earnings-per-share growth, the picture is similar: Arcos Dorados Holdings Inc. grew EPS 42. 3% year-over-year, compared to 29. 7% for Amazon. com, Inc.. Over a 3-year CAGR, AMZN leads at 11. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Amazon.

com, Inc. (AMZN) is the more profitable company, earning 10. 8% net margin versus 4. 5% for Arcos Dorados Holdings Inc. — meaning it keeps 10. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AMZN leads at 11. 2% versus 7. 5% for ARCO. At the gross margin level — before operating expenses — AMZN leads at 50. 3%, 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.

On forward earnings alone, Arcos Dorados Holdings Inc.

(ARCO) trades at 13. 1x forward P/E versus 35. 3x for Amazon. com, Inc. — 22. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ARCO: 27. 5% to $11. 53.

In this comparison, ARCO (2.

7% yield) pays a dividend. AMZN does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Arcos Dorados Holdings Inc.

(ARCO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 98), 2. 7% yield, +124. 1% 10Y return). Amazon. com, Inc. (AMZN) carries a higher beta of 1. 51 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ARCO: +124. 1%, AMZN: +715. 9%), 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.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: ARCO is a small-cap deep-value stock; AMZN is a mega-cap quality compounder stock. ARCO pays a dividend while AMZN does not, making them suitable for different income and tax situations. 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.