Comprehensive Stock Comparison
Compare Best Buy Co., Inc. (BBY) vs Amazon.com, Inc. (AMZN) 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 | AMZN | 12.4% revenue growth vs BBY's -4.4% |
| Value | BBY | Lower P/E (9.9x vs 27.0x) |
| Quality / Margins | AMZN | 10.8% net margin vs BBY's 1.5% |
| Stability / Safety | AMZN | Beta 1.31 vs BBY's 1.43, lower leverage |
| Dividends | BBY | 6.0% yield; 7-year raise streak; AMZN pays no meaningful dividend |
| Momentum (1Y) | AMZN | -1.1% vs BBY's -26.8% |
| Efficiency (ROA) | AMZN | 9.5% ROA vs BBY's 3.8%, ROIC 14.7% vs 23.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Best Buy is a major electronics retailer operating physical stores and e-commerce platforms across North America. It generates revenue primarily through product sales — including consumer electronics, appliances, and computing devices — supplemented by services like installation, repair, and memberships. The company's competitive advantage lies in its extensive physical footprint for customer service and product demonstrations, combined with omnichannel capabilities that bridge online and in-store experiences.
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.
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
AMZN leads in 3 of 6 categories (Financial Metrics, Total Returns). BBY leads in 2 (Valuation Metrics, Profitability & Efficiency).
Financial Metrics (TTM)
AMZN is the larger business by revenue, generating $716.9B annually — 17.1x BBY's $41.8B. AMZN is the more profitable business, keeping 10.8% of every revenue dollar as net income compared to BBY's 1.5%. On growth, AMZN holds the edge at +13.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | BBYBest Buy Co., Inc. | AMZNAmazon.com, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $41.8B | $716.9B |
| EBITDAEarnings before interest/tax | $1.8B | $126.3B |
| Net IncomeAfter-tax profit | $645M | $77.7B |
| Free Cash FlowCash after capex | $1.5B | $7.7B |
| Gross MarginGross profit ÷ Revenue | +22.5% | +50.3% |
| Operating MarginEBIT ÷ Revenue | +3.1% | +11.2% |
| Net MarginNet income ÷ Revenue | +1.5% | +10.8% |
| FCF MarginFCF ÷ Revenue | +3.6% | +1.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +2.4% | +13.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -47.6% | +4.8% |
Valuation Metrics
At 14.5x trailing earnings, BBY trades at a 51% valuation discount to AMZN's 29.3x P/E. On an enterprise value basis, BBY's 6.0x EV/EBITDA is more attractive than AMZN's 18.4x.
| Metric | BBYBest Buy Co., Inc. | AMZNAmazon.com, Inc. |
|---|---|---|
| Market CapShares × price | $13.0B | $2.25T |
| Enterprise ValueMkt cap + debt − cash | $15.5B | $2.32T |
| Trailing P/EPrice ÷ TTM EPS | 14.48x | 29.29x |
| Forward P/EPrice ÷ next-FY EPS est. | 9.85x | 27.03x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.05x |
| EV / EBITDAEnterprise value multiple | 5.99x | 18.38x |
| Price / SalesMarket cap ÷ Revenue | 0.31x | 3.14x |
| Price / BookPrice ÷ Book value/share | 4.78x | 5.55x |
| Price / FCFMarket cap ÷ FCF | 9.35x | 292.96x |
Profitability & Efficiency
BBY delivers a 24.3% return on equity — every $100 of shareholder capital generates $24 in annual profit, vs $19 for AMZN. AMZN carries lower financial leverage with a 0.37x debt-to-equity ratio, signaling a more conservative balance sheet compared to BBY's 1.44x.
| Metric | BBYBest Buy Co., Inc. | AMZNAmazon.com, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +24.3% | +18.9% |
| ROA (TTM)Return on assets | +3.8% | +9.5% |
| ROICReturn on invested capital | +23.7% | +14.7% |
| ROCEReturn on capital employed | +24.9% | +15.3% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 6 |
| Debt / EquityFinancial leverage | 1.44x | 0.37x |
| Net DebtTotal debt minus cash | $2.5B | $66.2B |
| Cash & Equiv.Liquid assets | $1.6B | $86.8B |
| Total DebtShort + long-term debt | $4.1B | $153.0B |
| Interest CoverageEBIT ÷ Interest expense | 13.04x | 42.78x |
Total Returns (with DRIP)
A $10,000 investment in AMZN five years ago would be worth $13,349 today (with dividends reinvested), compared to $7,821 for BBY. Over the past 12 months, AMZN leads with a -1.1% total return vs BBY's -26.8%. The 3-year compound annual growth rate (CAGR) favors AMZN at 30.6% vs BBY's -4.1% — a key indicator of consistent wealth creation.
| Metric | BBYBest Buy Co., Inc. | AMZNAmazon.com, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -10.4% | -7.3% |
| 1-Year ReturnPast 12 months | -26.8% | -1.1% |
| 3-Year ReturnCumulative with dividends | -11.9% | +122.9% |
| 5-Year ReturnCumulative with dividends | -21.8% | +33.5% |
| 10-Year ReturnCumulative with dividends | +173.1% | +660.0% |
| CAGR (3Y)Annualised 3-year return | -4.1% | +30.6% |
Risk & Volatility
AMZN is the less volatile stock with a 1.31 beta — it tends to amplify market swings less than BBY's 1.43 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. AMZN currently trades 81.2% from its 52-week high vs BBY's 68.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | BBYBest Buy Co., Inc. | AMZNAmazon.com, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.43x | 1.31x |
| 52-Week HighHighest price in past year | $90.86 | $258.60 |
| 52-Week LowLowest price in past year | $54.99 | $161.38 |
| % of 52W HighCurrent price vs 52-week peak | +68.2% | +81.2% |
| RSI (14)Momentum oscillator 0–100 | 38.2 | 39.9 |
| Avg Volume (50D)Average daily shares traded | 3.5M | 40.7M |
Analyst Outlook
Wall Street rates BBY as "Hold" and AMZN as "Buy". Consensus price targets imply 35.2% upside for AMZN (target: $284) vs 26.7% for BBY (target: $79). BBY is the only dividend payer here at 6.01% yield — a key consideration for income-focused portfolios.
| Metric | BBYBest Buy Co., Inc. | AMZNAmazon.com, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $78.50 | $283.97 |
| # AnalystsCovering analysts | 40 | 94 |
| Dividend YieldAnnual dividend ÷ price | +6.0% | — |
| Dividend StreakConsecutive years of raises | 7 | — |
| Dividend / ShareAnnual DPS | $3.73 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +3.8% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Best Buy Co., Inc. (BBY) | 100 | 82.78 | -17.2% |
| Amazon.com, Inc. (AMZN) | 100 | 248.68 | +148.7% |
Amazon.com, Inc. (AMZN) returned +33% over 5 years vs Best Buy Co., Inc. (BBY)'s -22%. A $10,000 investment in AMZN 5 years ago would be worth $13,349 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Best Buy Co., Inc. (BBY) | $39.5B | $41.5B | +5.1% |
| Amazon.com, Inc. (AMZN) | $136.0B | $716.9B | +427.2% |
Best Buy Co., Inc.'s revenue grew from $39.5B (2016) to $41.5B (2025) — a 0.5% CAGR. Amazon.com, Inc.'s revenue grew from $136.0B (2016) to $716.9B (2025) — a 20.3% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Best Buy Co., Inc. (BBY) | 2.3% | 2.2% | -1.6% |
| Amazon.com, Inc. (AMZN) | 1.7% | 10.8% | +521.4% |
Best Buy Co., Inc.'s net margin went from 2% (2016) to 2% (2025). Amazon.com, Inc.'s net margin went from 2% (2016) to 11% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Best Buy Co., Inc. (BBY) | 18 | 15.6 | -13.3% |
| Amazon.com, Inc. (AMZN) | 188.6 | 32.2 | -82.9% |
Best Buy Co., Inc. has traded in a 8x–18x P/E range over 9 years; current trailing P/E is ~14x. Amazon.com, Inc. has traded in a 32x–189x P/E range over 8 years; current trailing P/E is ~29x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Best Buy Co., Inc. (BBY) | 2.56 | 4.28 | +67.2% |
| Amazon.com, Inc. (AMZN) | 0.25 | 7.17 | +2768.0% |
Best Buy Co., Inc.'s EPS grew from $2.56 (2016) to $4.28 (2025) — a 6% CAGR. Amazon.com, Inc.'s EPS grew from $0.25 (2016) to $7.17 (2025) — a 45% CAGR.
Chart 6Free Cash Flow — 5 Years
Best Buy Co., Inc. generated $1B FCF in 2025 (-67% vs 2021). Amazon.com, Inc. generated $8B FCF in 2025 (+152% vs 2021).
BBY vs AMZN: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is BBY or AMZN a better buy right now?
Best Buy Co., Inc. (BBY) offers the better valuation at 14.5x trailing P/E (9.9x 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 — BBY or AMZN?
On trailing P/E, Best Buy Co., Inc. (BBY) is the cheapest at 14.5x versus Amazon.com, Inc. at 29.3x. On forward P/E, Best Buy Co., Inc. is actually cheaper at 9.9x.
03Which is the better long-term investment — BBY or AMZN?
Over the past 5 years, Amazon.com, Inc. (AMZN) delivered a total return of +33.5%, compared to -21.8% for Best Buy Co., Inc. (BBY). A $10,000 investment in AMZN five years ago would be worth approximately $13K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AMZN returned +660.0% versus BBY's +173.1%. 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 — BBY or AMZN?
By beta (market sensitivity over 5 years), Amazon.com, Inc. (AMZN) is the lower-risk stock at 1.31β versus Best Buy Co., Inc.'s 1.43β — meaning BBY is approximately 9% more volatile than AMZN relative to the S&P 500. On balance sheet safety, Amazon.com, Inc. (AMZN) carries a lower debt/equity ratio of 37% versus 144% for Best Buy Co., Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — BBY or AMZN?
Amazon.com, Inc. (AMZN) is the more profitable company, earning 10.8% net margin versus 2.2% for Best Buy Co., 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 4.1% for BBY. 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.
06Is BBY or AMZN more undervalued right now?
On forward earnings alone, Best Buy Co., Inc. (BBY) trades at 9.9x forward P/E versus 27.0x for Amazon.com, Inc. — 17.2x 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 — BBY or AMZN?
In this comparison, BBY (6.0% yield) pays a dividend. AMZN does not pay a meaningful dividend and should not be held primarily for income.
08Is BBY or AMZN better for a retirement portfolio?
For long-horizon retirement investors, Best Buy Co., Inc. (BBY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (6.0% yield, +173.1% 10Y return). Both have compounded well over 10 years (BBY: +173.1%, 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 BBY and AMZN?
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: BBY is a mid-cap deep-value stock; AMZN is a mega-cap quality compounder stock. BBY 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.
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